Kintzinger Law Firm maintains its book on a cash basis. During 2021, the company collected $825,000 in fees from its clients and paid $512,000 in expenses. You are able to determine the following information about accounts receivable, supplies, prepaid rent, salaries payable, and interest payable: December 31, 2021 December 31, 2020 $130,000 $120,000 Accounts receivable Supplies Prepaid rent Deferred revenue Salaries payable terest payable addition, 2021 depreciation expense on office equipment is $25,000. quired: Determine accrual-basis 1.) revenue, 2.) expense and 3.) net income for 2021. venue 15,000 13,000 22,000 16,500 4,000 18,000 11,000 20,000 14,000 5,500
Kintzinger Law Firm maintains its book on a cash basis. During 2021, the company collected $825,000 in fees from its clients and paid $512,000 in expenses. You are able to determine the following information about accounts receivable, supplies, prepaid rent, salaries payable, and interest payable: December 31, 2021 December 31, 2020 $130,000 $120,000 Accounts receivable Supplies Prepaid rent Deferred revenue Salaries payable terest payable addition, 2021 depreciation expense on office equipment is $25,000. quired: Determine accrual-basis 1.) revenue, 2.) expense and 3.) net income for 2021. venue 15,000 13,000 22,000 16,500 4,000 18,000 11,000 20,000 14,000 5,500
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
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Transcribed Image Text:Kintzinger Law Firm maintains its book on a cash basis. During 2021, the company collected $825,000 in fees from its clients and paid
$512,000 in expenses. You are able to determine the following information about accounts receivable, supplies, prepaid rent, salaries
payable, and interest payable:
December 31, 2021 December 31, 2020
$130,000
15,000
$120,000
18,000
13,000
11,000
22,000
20,000
16,500
14,000
4,000
5,500
Accounts receivable
Supplies
Prepaid rent
Deferred revenue
Salaries payable
Interest payable
In addition, 2021 depreciation expense on office equipment is $25,000.
Required: Determine accrual-basis 1.) revenue, 2.) expense and 3.) net income for 2021.
Revenue
Expense
Net income
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