Compute 2018 cash-basis net income? Primo Industries collected $226,000 from customers in 2018. Of theamount collected, $113.000 was from services performed in 2017.In addition, Primo performed services worth $156,000 in 2018,which will not be collected until 2019.Primo Industries also paid $182,000 for expenses in 2018. Of theamount paid, $142,000 was for expenses incurred on account in2017. In addition, Primo incurred $153,000 of expenses in 2018,which will not be paid until 2019.Compute 2018 cash-basis net income.

Explanation of Cash-Basis Accounting: Cash-basis accounting is a method that recognizes revenue when…

Answered: Primo Industries collected $226,000…

Cornerstones of Financial Accounting

4th Edition

ISBN:9781337690881

Author:Jay Rich, Jeff Jones

Publisher:Jay Rich, Jeff Jones

Chapter3: Accrual Accounting

Section: Chapter Questions

Problem 2MCQ: In December 2019, Swanstrom Inc. receives a cash payment of $3,500 for services performed in...

See similar textbooks

Similar questions

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
Ivanhoe Industries collected $104,000 from customers in 2022. Of the amount collected, $24,800 was for services performed in 2021. In addition, Ivanhoe performed services worth $41,600 in 2022, which will not be collected until 2023. Ivanhoe Industries also paid $72,200 for expenses in 2022. Of the amount paid, $30,200 was for expenses incurred on account in 2021. In addition, Ivanhoe incurred $40,800 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 $
Splish Brothers Industries collected $130,200 from customers in 2022. Of the amount collected, $31,000 was for services performed in 2021. In addition, Splish Brothers performed services worth $49,600 in 2022, which will not be collected until 2023. Splish Brothers Industries also paid $89,280 for expenses in 2022. Of the amount paid, $37,200 was for expenses incurred on account in 2021. In addition, Splish Brothers incurred $52,080 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 $ %24
Dog
For 2017, Sampsell Inc. computed its annual postretirement expense as $240,900. Sampsell’s contribution to the plan during 2017 was $180,000. Prepare Sampsell’s 2017 entry to record a postretirement expense, assuming Sampsell has no OCI amounts.
Please help me
Pincus Associates uses the allowance method to account for bad debts. During 2021, its first year of operations, Pincus provided a total of $290,000 of services on account. In 2021, the company wrote off uncollectible accounts of $11,700. By the end of 2021, cash collections on accounts receivable totaled $245,700. Pincus estimates that 15% of the accounts receivable balance at 12/31/2021 will prove uncollectible.Required:1. & 2. What journal entry did Pincus record to write off uncollectible accounts during 2021 and to recognize bad debt expense for 2021? (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.)
The Accounts Receivable balance for Lake, Inc. at December 31, 2017, was $20,000. During 2018, Lake earned revenue of $454,000 on account and collected $325,000 on account. Lake wrote off $5,600 receivables as uncollectible. Industry experience suggests that uncollectible accounts will amount to 5% of accounts receivable. Requirements 1. Assume Lake had an unadjusted $2,700 credit balance in Allowance for Bad Debts at December 31, 2018. Journalize Lake’s December 31, 2018, adjustment to record bad debts expense using the percent-of-receivables method. 2. Assume Lake had an unadjusted $2,400 debit balance in Allowance for Bad Debts at December 31, 2018. Journalize Lake’s December 31, 2018, adjustment to record bad debts expense using the percent-of-receivables method.
The Manda Panda Company uses the allowance method to account for bad debts. At the beginning of 2021, the allowance account had a credit balance of $75,000. Credit sales for 2021 totaled $2,400,000 and the year-end accounts receivable balance was $490,000. During this year, $73,000 in receivables were determined to be uncollectible. Manda Panda anticipates that 3% of all credit sales will ultimately become uncollectible. The fiscal year ends on December 31.Required:1. Does this situation describe a loss contingency? Explain.2. What is the bad debt expense that Manda Panda should report in its 2021 income statement?3. Prepare the appropriate journal entry to record the contingency.4. What is the net accounts receivable value Manda Panda should report in its 2021 balance sheet?
During 2018, Evensen Network , Inc., which designs network services, earned revenues of $900 million. Expenses totaled $580 million. Evensen collected all but $21 million of the revenues and paid $590 million on its expenses. b. Under accrual accounting, what amount of total expense should Evensen report for 2018? Which accounting principle helps to answer this question? The amount of total expense that should be reported for the year is $ million.
During 2018, Evensen Network, Inc., which designs network servers, earned revenues of $900 million. Expenses totaled $580 million. Evensen collected all but $29 million of the revenues and paid $590 million on its expenses. Read the requirements LOADING... . Requirement a. Under accrual accounting, what amount of revenue should Evensen report for 2018? How does the revenue principle help to answer this question? The amount of revenue that should be reported for the year is $ 900 million. How does the revenue principle help to answer this question? The revenue principle says to record revenue when it has been (collected, earned, recorded), regardless of when (cash is collected, revenue is earned, sold inventory is delivered).Therefore, the amount of revenue reported is what Evensen (collected, earned ,paid). ()= blank. inside are the word choices
Pincus Associates uses the allowance method to account for bad debts. During 2021, its first year of operations, Pincus provided a total of $239,000 of services on account. In 2021, the company wrote off uncollectible accounts of $9,600. By the end of 2021, cash collections on accounts receivable totaled $201,600. Pincus estimates that 10% of the accounts receivable balance at 12/31/2021 will prove uncollectible. Required:1. & 2. What journal entry did Pincus record to write off uncollectible accounts during 2021 and to recognize bad debt expense for 2021?

SEE MORE QUESTIONS

Recommended textbooks for you

Cornerstones of Financial Accounting

Accounting

ISBN:

9781337690881

Author:

Jay Rich, Jeff Jones

Publisher:

Cengage Learning

Cornerstones of Financial Accounting

Accounting

ISBN:

9781337690881

Author:

Jay Rich, Jeff Jones

Publisher:

Cengage Learning

SEE MORE TEXTBOOKS