Primo Industries collected $105,000 from customers in 2014. Of the amountcollected, $25.000 was from services performed in 2013. In addition, Primoperformed services worth $40,000 in 2014, which will not be collected until2015.Primo Industries also paid $72,000 for expenses in 2014. Of the amount paid,$30,000 was for expenses incurred on account in 2013. In addition, Primoincurred $42,000 of expenses in 2014, which will not be paid until 2015.a. Compute 2014 cash-basis net income.b. Compute 2014 accrual-basis net income.

Step 1: Introduction to the Basis of Accounting:In preparing the financial statements of the…

Answered: Primo Industries collected $105,000…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

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The comparative balance sheet of Sloan company reveal that accounts receivable (before deducting allowance) increased by $15,000 in 2016. During the same period, the allowance for uncollectible accounts increased by $2,100. If sales revenue was $120,000 in 2016nand bad debt expenses were 2% of sales, how much cash was collected from customers during the year? Please show the work.
During 2014, a company wrote off $6,000 in uncollectible accounts receivable. At the end of the year, they estimated bad debt expense using a percent of gross sales. In 2015, the company recovered a $1,000 account that was written off in 2014. The recording of this recovery would include a a. Debit to retained earnings b. Credit to accounts receivable c. Debit to allowance for doubtful accounts d. Credit to prior period adjustments
Sandhill Industries collected $105,000 from customers in 2022. Of the amount collected, $25,700 was for services performed in 2021. In addition, Sandhill performed services worth $38,900 in 2022, which will not be collected until 2023. Sandhill Industries also paid $71,300 for expenses in 2022. Of the amount paid, $29,300 was for expenses incurred on account in 2021. In addition, Sandhill incurred $40.900 of expenses in 2022, which will not be paid until 2023. (a) Compute 2022 cash-basis net income. Cash-basis net income $ (b) Compute 2022 accrual-basis net income. Accrual-basis net income $ 33.700
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During 2017, Egyptian Mau Company construct building costing P18,500,000. The weighted average accumulated expenditures on the building during 2017 totaled P7,800,000. The entity borrowed P4,000,000 at 7% on January 1, 2017. Funds not needed for construction were temporarily invested in short-term securities, and earned P120,000 interest revenue. In addition to the construction loan, the entity had two other notes outstanding during the year, P3,000,000, 10-year, 10% note payable dated October 1, 2015, and a 5-year P2,000,000, 8% note payable dated November 2, 2015. What amount of interest should be capitalized on December 31, 2017? A. 574,000 B. 620,000 C. 509,600 D. 629,600
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