TCL Company had the following transactions during 2021 1. Sales of $4,500 on account 2. Collected P2,000 for services to be performed in 2022 3. Paid P625 cash in salaries 4. Purchased airline tickets for $250 in December for a trip to take place in 2022 What is TCL's 2021 net income using accrual accounting? What is TCL's net income using cash basis accounting?

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
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TCL Company had the following transactions
during 2021
1. Sales of $4,500 on account
2. Collected P2,000 for services to be
performed in 2022
3. Paid P625 cash in salaries
4. Purchased airline tickets for $250 in
December for a trip to take place in 2022
What is TCL's 2021 net income using
accrual accounting?
What is TCL's net income using cash
basis accounting?
Transcribed Image Text:TCL Company had the following transactions during 2021 1. Sales of $4,500 on account 2. Collected P2,000 for services to be performed in 2022 3. Paid P625 cash in salaries 4. Purchased airline tickets for $250 in December for a trip to take place in 2022 What is TCL's 2021 net income using accrual accounting? What is TCL's net income using cash basis accounting?
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