Homework Help is Here – Start Your Trial Now!
Business
Accounting
Prairies Consultants Inc. Amount of Revenue (Expense) for May 2017 Date Cash Basis Accrual Basis May 1 4 8 11 19 24 26 29 31 31

Prairies Consultants Inc. Amount of Revenue (Expense) for May 2017 Date Cash Basis Accrual Basis May 1 4 8 11 19 24 26 29 31 31

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
See similar textbooks
icon
Related questions
Question
Show how each transaction would be handled using the cash basis and the accrual basis. Assume depreciation expense of $30 for software and $30 for the computer.
 
Under each column, give the amount of revenue or expense for May using the cash basis and the accrual basis. (Enter "0" for any transactions that do not affect revenues or expenses. Use parentheses or a minus sign when entering expenses or losses.) Prairies Consultants Inc. Amount of Revenue (Expense) for May 2017 Date Cash Basis Accrual Basis May 1 4 8 11 19 24 26 29 31 31
Transcribed Image Text:Under each column, give the amount of revenue or expense for May using the cash basis and the accrual basis. (Enter "0" for any transactions that do not affect revenues or expenses. Use parentheses or a minus sign when entering expenses or losses.) Prairies Consultants Inc. Amount of Revenue (Expense) for May 2017 Date Cash Basis Accrual Basis May 1 4 8 11 19 24 26 29 31 31
May 1 Prepaid insurance for May through September, $1,000 4 Purchased software for cash, $700 5 Performed service and received cash, $500 8 Paid advertising expense, $500 11 Performed service on account, $3,200 19 Purchased computer on account, $2,300 24 Collected for the May 11 service 26 Paid account payable from May 19 29 Paid salary expense, $800 31 Adjusted for May insurance expense (see May 1) 31 Earned revenue of $600 that was collected in advance in April
Transcribed Image Text:May 1 Prepaid insurance for May through September, $1,000 4 Purchased software for cash, $700 5 Performed service and received cash, $500 8 Paid advertising expense, $500 11 Performed service on account, $3,200 19 Purchased computer on account, $2,300 24 Collected for the May 11 service 26 Paid account payable from May 19 29 Paid salary expense, $800 31 Adjusted for May insurance expense (see May 1) 31 Earned revenue of $600 that was collected in advance in April
Expert Solution
steps

Step by step

Solved in 2 steps with 1 images

SEE SOLUTIONCheck out a sample Q&A here
Blurred answer
Knowledge Booster
Methods of accounting
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.
Recommended textbooks for you
FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
Accounting
ISBN:
9781259964947
Author:
Libby
Publisher:
MCG
Accounting
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Horngren's Cost Accounting: A Managerial Emphasis…
Horngren's Cost Accounting: A Managerial Emphasis…
Accounting
ISBN:
9780134475585
Author:
Srikant M. Datar, Madhav V. Rajan
Publisher:
PEARSON
Intermediate Accounting
Intermediate Accounting
Accounting
ISBN:
9781259722660
Author:
J. David Spiceland, Mark W. Nelson, Wayne M Thomas
Publisher:
McGraw-Hill Education
Financial and Managerial Accounting
Financial and Managerial Accounting
Accounting
ISBN:
9781259726705
Author:
John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles
Publisher:
McGraw-Hill Education
SEE MORE TEXTBOOKS