During the month of March 2014, Dark World, a tax- preparation service, had the following transactions. Billed $296,000 in revenues on credit Received $298,000 from customers' accounts receivable Incurred expenses of $159,000 but only paid $77,700 cash for these expenses - Prepaid $22,220 for computer services to be used next month What was the company's accrual basis net income for the month?

SWFT Comprehensive Volume 2019
42nd Edition
ISBN:9780357233306
Author:Maloney
Publisher:Maloney
Chapter16: Accounting Periods And Methods
Section: Chapter Questions
Problem 22CE
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During the month of March 2014, Dark World, a tax-
preparation service, had the following transactions.
Billed $296,000 in revenues on credit
Received $298,000 from customers' accounts receivable
Incurred expenses of $159,000 but only paid $77,700
cash for these expenses
- Prepaid $22,220 for computer services to be used next
month
What was the company's accrual basis net income for the
month?
Transcribed Image Text:During the month of March 2014, Dark World, a tax- preparation service, had the following transactions. Billed $296,000 in revenues on credit Received $298,000 from customers' accounts receivable Incurred expenses of $159,000 but only paid $77,700 cash for these expenses - Prepaid $22,220 for computer services to be used next month What was the company's accrual basis net income for the month?
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