Answered: JKL Manufacturing collected $128,950… | bartleby

SWFT Individual Income Taxes

SWFT Individual Income Taxes

43rd Edition

ISBN:9780357391365

Author:YOUNG

Publisher:YOUNG

Chapter13: Tax Credits And Payment Procedures

Section: Chapter Questions

Problem 25P

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Question

Can you solve this general accounting problem using appropriate accounting principles?

JKL Manufacturing collected $128,950 from customers in 2023. Of
the amount collected, $32,450 was from services performed in 2022.
In addition, JKL performed services worth $47,820 in 2023, which will
not be collected until 2024. JKL Manufacturing also paid $89,675 for
expenses in 2023. Of the amount paid, $34,580 was for expenses
incurred in 2022. In addition, JKL incurred $38,750 of expenses in
2023, which will not be paid until 2024. Compute 2023 cash-basis net
income.

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