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evan corporation provided consulting services for kensington company in 2015.. evan incurrecd costs of $60,000 association...

evan corporation provided consulting services for kensington company in 2015.. evan incurrecd costs of $60,000 association with the consulting and billed kensignton $90,000. evan paid $40,000 of its costs in 2015 and the remaining $20,000 in 2016, evan received $45,000 of its billing in 2015. kensington paid the remaining $45,000 in 2016. evan reports on the accrual basis of accounting. How much is evans 2015 and 2016 profit related to the kensington consulting?

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Answer #1
Under the accrual basis of accounting, revenue and expenses are reported when incurred irrespective of actual receipt or payment
Profit in 2015 = 90000-60000 = $30000
Profit in 2016 = $0
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