During June, Thuy Bui's business performed services for a specific customer for which the fee was $5,000. Payment was received inthe following month July.Required:1. Was the revenue earned in June or July? How is profit determined under the cash basis of accounting and the accrual basis ofaccounting?2. What journal entries should be recorded under accrual accounting in June and July3. What journal entries should be recorded under cash accounting in June and July?For the toolbar, press ALT+F10 (PC) or ALT+FN+F10 (Mac).TTTArial

Part a) As per IAS 18, revenue from sale of services is recognised in the period when the service…

Answered: During June, Thuy Bui's business…

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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The recognition principal of accrual accounting says revenue is recognized: Based on the firm’s cash accounts at the end of the fiscal year. When payments are received for the goods or services produced by the firm. When the activities required to earn the revenues are completed. When all resources that went into producing the goods or services are paid.
Gomez Corp. uses the allowance method to account for uncollectibles. On January 31, it wrote off an $1,000 account of a customer, C Green. On March 9, it receives a $500 payment from Green. 1. Prepare the journal entry for January 31 2. Prepare the journal entries for March 9; assume no additional money is expected from Green. View transaction list Journal entry worksheet
Hello, can I have help with creating a journal entry, ending balances, income statement, and net profit ratio?
IDENTIFY THE EFFECT OF THE FOLLOWING TRANSACTION TO THE RISK OF MATERIAL MISSTATEMENT TO FINANCIAL STATEMENTS. The employees of the company are being paid on a weekly basis. Does it have a: A. INCREASE effect B. DECREASE effect C. NO EFFECT effect
a. During February, $90,040 was paid to creditors on account, and purchases on account were $115,250. Assuming the February 28 balance of Accounts Payable was $38,720, determine the account balance on February 1. $ b. On October 1, the accounts receivable account balance was $50,800. During October, $442,000 was collected from customers on account. Assuming the October 31 balance was $58,400, determine the fees billed to customers on account during October. $ c. On April 1, the cash account balance was $18,070. During April, cash receipts totaled $274,660 and the April 30 balance was $13,010. Determine the cash payments made during April. $
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Under the accrual basis of accounting - if cash has been received before the revenue has been earned, which of the following journal entries should be recorded? A) Debit Cash, Credit Unearned Revenue. B) Debit Cash, Credit Sales Revenue. C) Debit Unearned Revenue, Credit Cash. D) Debit Cash, Credit Accounts Receivable.
Account Balances a. During February, $79,920 was paid to creditors on account, and purchases on account were $102,300. Assuming that the February 28 balance of Accounts Payable was $34,370, determine the account balance on February 1.$fill in the blank 1 b. On October 1, the accounts receivable account balance was $49,900. During October, $434,100 was collected from customers on account. Assuming that the October 31 balance was $57,400, determine the fees billed to customers on account during October.$fill in the blank 2 c. On April 1, the cash account balance was $18,770. During April, cash receipts totaled $285,300 and the April 30 balance was $13,510. Determine the cash payments made during April.$fill in the blank 3
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