ARNOLD maintains its accounting records on the cash basis. During 2020, he collected P185,000 from his clients and paid P92,000 in expenses. Upon examination of additional evidence, the following information was obtained: 1/01/20 12/31/20 Accounts receivable Unearned revenues Accrued expenses Prepaid expenses Requirements: 1) Total revenue in 2020. 2) Total expense for 2020. 3) Correct net income for 2020. 9,000 7,000 3,000 5,000 15,000 4,000 2,000 16,000

ARNOLD maintains its accounting records on the cash basis. During 2020, he collected P185,000 from his clients and paid P92,000 in expenses. Upon examination of additional evidence, the following information was obtained: 1/01/20 12/31/20 Accounts receivable Unearned revenues Accrued expenses Prepaid expenses Requirements: 1) Total revenue in 2020. 2) Total expense for 2020. 3) Correct net income for 2020. 9,000 7,000 3,000 5,000 15,000 4,000 2,000 16,000

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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