Total Paint Services earned $125,000 of service revenue during 2024. Of the $125,000 earned, the business received $99,000 in cash. The remaining amount, $26,000, was still owed by as of December 31. In addition, Total Paint Services incurred $75,000 of expenses during the year. As of December 31, $15,000 of the expenses still needed to be paid. In addition, Total Paint Services prepaid $8,000 cash in December 2024 for expenses incurred during the next year. 1. Determine the amount of service revenue and expenses for 2024 using a cash basis accounting system. 2. Determine the amount of service revenue and expenses for 2024 using an accrual basis accounting system. . Determine the amount of service revenue and expenses for 2024 using a cash basis accounting system. Cash basis Service revenue Expenses

Total Paint Services earned $125,000 of service revenue during 2024. Of the $125,000 earned, the business received $99,000 in cash. The remaining amount, $26,000, was still owed by as of December 31. In addition, Total Paint Services incurred $75,000 of expenses during the year. As of December 31, $15,000 of the expenses still needed to be paid. In addition, Total Paint Services prepaid $8,000 cash in December 2024 for expenses incurred during the next year. 1. Determine the amount of service revenue and expenses for 2024 using a cash basis accounting system. 2. Determine the amount of service revenue and expenses for 2024 using an accrual basis accounting system. . Determine the amount of service revenue and expenses for 2024 using a cash basis accounting system. Cash basis Service revenue Expenses

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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Ion Corporation, a calendar year C corporation, was formed on September 1, 2020, and opened for business on October 1, 2020. After its formation but prior to opening for business, Ion incurred the following expenditures. Accounting $10,500 Advertising 20,700 Employee payroll 12,800 Rent 4,000 Utilities 2,200 Round the per-month amount to two decimal places and use the rounded amount in subsequent computations. Round the final answer to the nearest dollar. Assuming the company makes the § 195 election, the maximum amount of these expenditures that Ion can deduct in 2020 is
Bonobo's activities for the year ended December 31, 2018 included the following: • Income tax expense for the year was $30,000. • Sales for the year were $650,000. • Accounts payable decreased $10,000 in 2018. • Selling and administration expenses for the year totaled $200,000. • Accounts receivable increased $20,000 in 2018. • The Company's cost of goods sold in 2018 was $325,000. • The Company's inventory decreased $15,000 during the year. What is the cash receipts from customers under the direct method? O $110,000 $630,000 $320,000 $670,000
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Marigold Consulting uses the cash basis of accounting and a fiscal year ending December 31. Beginning on September 1, 2021, Marigold performs services for Bramble International at a rate of $3900 per month. On February 12, 2022, Bramble pays Marigold $19500 in full for all services rendered from September 1, 2021 to January 31, 2022. Marigold understated revenues by ________ on its 2021 income statement. $15600 $19500 $3900 $11700
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