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Required: For each transaction, determine the amount of revenue or expense, if any, that is recorded under accrual-basis accounting and und cash-basis accounting in the current period. Transaction 1. Receive cash from customers in advance of services to be provided, $600. 2. Pay utilities bill for the previous period, $150. 3. Pay for insurance in advance of the period to be covered, $2,000. 4. Pay workers' salaries for the current period, $800. 5. Incur costs for employee salaries in the current period but do not pay, $1,000. 6. Receive cash from customers at the time of service, $1,700. 7. Purchase office supplies on account, $330. 8. Borrow cash from the bank, $4,000. 9. Receive cash from customers for services performed in the previous period, $750. 10. Pay for advertising to appear in the current period, $450. Accrual-Basis Revenue Expense Cash-Basis Revenue Expense

Required: For each transaction, determine the amount of revenue or expense, if any, that is recorded under accrual-basis accounting and und cash-basis accounting in the current period. Transaction 1. Receive cash from customers in advance of services to be provided, $600. 2. Pay utilities bill for the previous period, $150. 3. Pay for insurance in advance of the period to be covered, $2,000. 4. Pay workers' salaries for the current period, $800. 5. Incur costs for employee salaries in the current period but do not pay, $1,000. 6. Receive cash from customers at the time of service, $1,700. 7. Purchase office supplies on account, $330. 8. Borrow cash from the bank, $4,000. 9. Receive cash from customers for services performed in the previous period, $750. 10. Pay for advertising to appear in the current period, $450. Accrual-Basis Revenue Expense Cash-Basis Revenue Expense

FINANCIAL ACCOUNTING
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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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 in the current period. Transaction 1. Receive cash from customers in advance of services to be provided, $600. 2. Pay utilities bill for the previous period, $150. 3. Pay for insurance in advance of the period to be covered, $2,000. 4. Pay workers' salaries for the current period, $800. 5. Incur costs for employee salaries in the current period but do not pay, $1,000. 6. Receive cash from customers at the time of service, $1,700. 7. Purchase office supplies on account, $330. 8. Borrow cash from the bank, $4,000. 9. Receive cash from customers for services performed in the previous period, $750. 10. Pay for advertising to appear in the current period, $450. Accrual-Basis Cash-Basis CHON Revenue Expense Revenue Expense
Transcribed Image Text: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 in the current period. Transaction 1. Receive cash from customers in advance of services to be provided, $600. 2. Pay utilities bill for the previous period, $150. 3. Pay for insurance in advance of the period to be covered, $2,000. 4. Pay workers' salaries for the current period, $800. 5. Incur costs for employee salaries in the current period but do not pay, $1,000. 6. Receive cash from customers at the time of service, $1,700. 7. Purchase office supplies on account, $330. 8. Borrow cash from the bank, $4,000. 9. Receive cash from customers for services performed in the previous period, $750. 10. Pay for advertising to appear in the current period, $450. Accrual-Basis Cash-Basis CHON Revenue Expense Revenue Expense
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