Cash-Basis and Accrual-Basis Accounting The records of Summers Building Company reveal the following information for 2019. Cash receipts during 2019 (including $50,000 paid by stockholders in exchange for common stock) were $272,900. Cash payments during 2019 (including $8,100 of dividends paid to stockholders) were $164,850. Total selling price of services billed to customers during 2019 was $201,700. Salaries earned by employees during 2019 were $115,200. Cost of supplies used during 2019 in operation of the business was $46,415. Required: 1. Calculate Summers Building Company's net income for 2019 on an accrual basis. $fill in the blank 1 2. Calculate Summers Building Company's net income for 2019 on a cash basis. $fill in the blank 2

FINANCIAL ACCOUNTING
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ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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Cash-Basis and Accrual-Basis Accounting
The records of Summers Building Company reveal the following information for 2019.
Cash receipts during 2019 (including $50,000 paid by stockholders in exchange for common stock) were $272,900.
Cash payments during 2019 (including $8,100 of dividends paid to stockholders) were $164,850.
Total selling price of services billed to customers during 2019 was $201,700.
Salaries earned by employees during 2019 were $115,200.
Cost of supplies used during 2019 in operation of the business was $46,415.
Required:
1. Calculate Summers Building Company's net income for 2019 on an accrual basis.
$fill in the blank 1
2. Calculate Summers Building Company's net income for 2019 on a cash basis.
$fill in the blank 2
Transcribed Image Text:Cash-Basis and Accrual-Basis Accounting The records of Summers Building Company reveal the following information for 2019. Cash receipts during 2019 (including $50,000 paid by stockholders in exchange for common stock) were $272,900. Cash payments during 2019 (including $8,100 of dividends paid to stockholders) were $164,850. Total selling price of services billed to customers during 2019 was $201,700. Salaries earned by employees during 2019 were $115,200. Cost of supplies used during 2019 in operation of the business was $46,415. Required: 1. Calculate Summers Building Company's net income for 2019 on an accrual basis. $fill in the blank 1 2. Calculate Summers Building Company's net income for 2019 on a cash basis. $fill in the blank 2
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