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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On January 1, 2021, the Marjlee Company began construction of an office building to be used as its corporate headquarters. The building was completed early in 2022. Construction expenditures for 2021, which were incurred evenly throughout the year, totaled $6,000,000. Marjlee had the following debt obligations which were outstanding during all of 2021: Construction loan, 10% $ 1,500,000Long-term note, 9% 2,000,000Long-term note, 6% 4,000,000 Required:Calculate the amount of interest capitalized in 2021 for the building using the specific interest method.
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