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Winter Company earned revenues of $150,000 in cash and $200,000 on account during 2018. Of the $200,000 on account, $63,000 was collected in cash in 2018 and the rest in 2019 The company incurred expenses of $115,000 in 2018 and made payments of $701000 towards the expenses in 2018. What is net income in 2018 under accrual accounting? O A. $350,000 O B. $235,000 C. $85,000 O D. $280,000

Winter Company earned revenues of $150,000 in cash and $200,000 on account during 2018. Of the $200,000 on account, $63,000 was collected in cash in 2018 and the rest in 2019 The company incurred expenses of $115,000 in 2018 and made payments of $701000 towards the expenses in 2018. What is net income in 2018 under accrual accounting? O A. $350,000 O B. $235,000 C. $85,000 O D. $280,000

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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Winter Company earned revenues of $150,000 in cash and $200,000 on account during 2018. Of the $200,000 on account, $63,000 was collected in cash in 2018 and the rest in 2019. The company incurred expenses of $115,000 in 2018 and made payments of $701000 towards the expenses in 2018. What is net income in 2018 under accrual accounting? O A. $350,000 O B. $235,000 OC. $85,000 O D. $280,000 Click to select your answer. 11.59nm 99+
Transcribed Image Text:Winter Company earned revenues of $150,000 in cash and $200,000 on account during 2018. Of the $200,000 on account, $63,000 was collected in cash in 2018 and the rest in 2019. The company incurred expenses of $115,000 in 2018 and made payments of $701000 towards the expenses in 2018. What is net income in 2018 under accrual accounting? O A. $350,000 O B. $235,000 OC. $85,000 O D. $280,000 Click to select your answer. 11.59nm 99+
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