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During the month of March 2014, Weimar World, a tax- preparation service, had the following transactions. - - Billed $296,000 in revenues on credit - Received $164,000 from customers' accounts receivable - Incurred expenses of $134,000 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? A) $162,000 B) $64,080 C) $41,860 D) None of the above.

During the month of March 2014, Weimar World, a tax- preparation service, had the following transactions. - - Billed $296,000 in revenues on credit - Received $164,000 from customers' accounts receivable - Incurred expenses of $134,000 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? A) $162,000 B) $64,080 C) $41,860 D) None of the above.

FINANCIAL ACCOUNTING
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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During the month of March 2014, Weimar World, a tax- preparation service, had the following transactions. - - Billed $296,000 in revenues on credit - Received $164,000 from customers' accounts receivable - Incurred expenses of $134,000 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? A) $162,000 B) $64,080 C) $41,860 D) None of the above.
Transcribed Image Text:During the month of March 2014, Weimar World, a tax- preparation service, had the following transactions. - - Billed $296,000 in revenues on credit - Received $164,000 from customers' accounts receivable - Incurred expenses of $134,000 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? A) $162,000 B) $64,080 C) $41,860 D) None of the above.
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