Listed below are several transactions that took place during the first two years of operations for the law firm of Pete, Pete and Roy.Year 1Year 2 Amounts billed to customers for services rendered$170,000 $220,000 Cash collected from customers 160,000 190,000 Cash disbursements: Salaries paid to employees for services rendered during the year 90,000 100,000 Utilities 30,000 40,000 Purchase of insurance policy 60,000 0 In addition, you learn that the company incurred utility costs of $35,000 in year 1, that there were no liabilities at the end of year 2, no anticipated bad debts on receivables, and that the insurance policy covers a three-year period.

Name: Listed below are several transactions that took place during the first
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Description: Listed below are several transactions that took place during the first two years of operations for the law firm of Pete, Pete and Roy.Year 1Year 2 Amounts billed to customers for services rendered$170,000 $220,000 Cash collected from customers 16

The Accrued expenses are the expenses which have been incurred during the period but not paid in…

Answered: Listed below are several transactions…

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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Listed below are several transactions that took place during the first two years of operations for the law firm of Pete, Pete and Roy.

Year 1	Year 2
Amounts billed to customers for services rendered	$	170,000	$	220,000
Cash collected from customers		160,000		190,000
Cash disbursements:
Salaries paid to employees for services rendered during the year		90,000		100,000
Utilities		30,000		40,000
Purchase of insurance policy		60,000		0

In addition, you learn that the company incurred utility costs of $35,000 in year 1, that there were no liabilities at the end of year 2, no anticipated bad debts on receivables, and that the insurance policy covers a three-year period.

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