Bonnie opens a computer sales and repair service during the current year. Her records for the year show: Repair revenue Computer sales Computer purchases Employee wages Supplies, utilities, etc. Gross income: Repair revenues Computer sales Total revenue Deductions: Cost of goods sold Employee wages Supplies, utilities, etc. Bonnie has computers on hand on December 31 that cost $40,000 and have a retail selling price of $65,000. Compute taxable income under the various methods. Total deductions Cash Sales Made Received Taxable income $30,000 26,000 $22,000 18,000 Liability Incurred Cash Paid Accrual $55,000 12,000 9,000 $27,500 10,000 6,000 Hybrid $
Bonnie opens a computer sales and repair service during the current year. Her records for the year show: Repair revenue Computer sales Computer purchases Employee wages Supplies, utilities, etc. Gross income: Repair revenues Computer sales Total revenue Deductions: Cost of goods sold Employee wages Supplies, utilities, etc. Bonnie has computers on hand on December 31 that cost $40,000 and have a retail selling price of $65,000. Compute taxable income under the various methods. Total deductions Cash Sales Made Received Taxable income $30,000 26,000 $22,000 18,000 Liability Incurred Cash Paid Accrual $55,000 12,000 9,000 $27,500 10,000 6,000 Hybrid $
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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