I don't need ai answer general accounting question Harmony Music Studio earned $220,000 of lesson revenue during 2022. Ofthis amount, the studio received $190,000 in cash, and customers still owed$30,000 as of December 31. The studio incurred $120,000 in expensesduring the year. As of December 31, $15,000 of these expenses remainedunpaid. Additionally, Harmony Music Studio prepaid $12,000 in December2022 for expenses that would be incurred in 2023.A) Determine the amount of lesson revenue and expenses for 2022 using acash-basis accounting system. B) Determine the amount of lesson revenueand expenses for 2022 using an accrual-basis accounting system.

Step 1: Definition of Cash-Basis and Accrual-Basis AccountingCash-Basis Accounting: Recognizes…

Answered: Harmony Music Studio earned $220,000 of…

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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