During the month of July 2022, Delta Tax Solutions, a tax-preparation service, had the following transactions: Billed $325,000 in revenues on credit Received $310,000 from customers' accounts receivable Incurred expenses of $172,000 but only paid $90,000 cash for these expenses Prepaid $18,500 for advertising services to be used next month What was the company's accrual basis net income for the month?
During the month of July 2022, Delta Tax Solutions, a tax-preparation service, had the following transactions: Billed $325,000 in revenues on credit Received $310,000 from customers' accounts receivable Incurred expenses of $172,000 but only paid $90,000 cash for these expenses Prepaid $18,500 for advertising services to be used next month What was the company's accrual basis net income for the month?
Chapter14: Taxes On The Financial Statements
Section: Chapter Questions
Problem 51P
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Net income?
Transcribed Image Text:During the month of July 2022, Delta Tax
Solutions, a tax-preparation service, had the
following transactions:
Billed $325,000 in revenues on credit
Received $310,000 from customers' accounts
receivable
Incurred expenses of $172,000 but only paid
$90,000 cash for these expenses
Prepaid $18,500 for advertising services to be
used next month
What was the company's accrual basis net
income for the month?
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