Use the following transactions to answer questions 17 – 19 Determine the amount of revenue or expense that would be reported at the time of the transaction under the two methods. An example transaction has been completed for you. Example: Purchased office supplies for cash, $440 Transaction Accrual-basis Cash-basis Revenue Expense Revenue Expense example Purchased office supplies for cash, $440 (no accrued expense, hasn't been used yet...cash flowed for the operating cost so it's a cash expense) SO SO sO $440 17. Issue common stock for $10,000 cash Received $5,000 cash from customers who were previously billed. 18. Pay $12,000 in workers' salaries for the current month. 19.
Use the following transactions to answer questions 17 – 19 Determine the amount of revenue or expense that would be reported at the time of the transaction under the two methods. An example transaction has been completed for you. Example: Purchased office supplies for cash, $440 Transaction Accrual-basis Cash-basis Revenue Expense Revenue Expense example Purchased office supplies for cash, $440 (no accrued expense, hasn't been used yet...cash flowed for the operating cost so it's a cash expense) SO SO sO $440 17. Issue common stock for $10,000 cash Received $5,000 cash from customers who were previously billed. 18. Pay $12,000 in workers' salaries for the current month. 19.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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I need the answer for 19
Transcribed Image Text:Use the following transactions to answer questions 17
- 19
Determine the amount of revenue or expense that would
be reported at the time of the transaction under the two
methods. An example transaction has been completed for
you.
Example: Purchased office supplies for cash, $440
Transaction
Accrual-basis
Cash-basis
Revenue Expense Revenue Expense
example Purchased office supplies for cash,
$440 (no accrued expense, hasn't been
used yet...cash flowed for the operating
cost so it's a cash expense)
$O
$440
17.
Issue common stock for $10,000 cash
Received $5,000 cash from customers who
were previously billed.
18.
Pay $12,000 in workers' salaries for the current
month.
19.
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