Required: For each transaction, determine the amount of revenue or expense, if any, that is recorded under accrual-basis accounting and under cash-basis accounting. Transaction 1. Receive cash from customers at the time of service, $2,100. 2. Issue common stock for cash, $4,400. 3. Receive cash from customers who were previously billed, $900. 4. Incur utilities cost in the current month but do not pay, $440. 5. Pay workers' salaries for the current month, $540. 6. Pay for rent one year in advance, $1,680. 7. Repay a long-term note to the bank, $1,400. 8. Pay workers' salaries for the previous period, $600. 9. Pay dividends to stockholders, $340. 10. Purchase office supplies for cash, $380. Accrual-Basis Cash-Basis Revenue Expense Revenue Expense

Required: For each transaction, determine the amount of revenue or expense, if any, that is recorded under accrual-basis accounting and under cash-basis accounting. Transaction 1. Receive cash from customers at the time of service, $2,100. 2. Issue common stock for cash, $4,400. 3. Receive cash from customers who were previously billed, $900. 4. Incur utilities cost in the current month but do not pay, $440. 5. Pay workers' salaries for the current month, $540. 6. Pay for rent one year in advance, $1,680. 7. Repay a long-term note to the bank, $1,400. 8. Pay workers' salaries for the previous period, $600. 9. Pay dividends to stockholders, $340. 10. Purchase office supplies for cash, $380. Accrual-Basis Cash-Basis Revenue Expense Revenue Expense

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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