Your Answer Correct Answer Crane Industries collected $106,000 from customers in 2022. Of the amount collected, $26,000 was for services performed in 2021. In addition, Crane performed services worth $42,000 in 2022, which will not be collected until 2023. Crane Industries also paid $72,700 for expenses in 2022. Of the amount paid, $30,300 was for expenses incurred on account in 2021. In addition, Crane incurred $41,000 of expenses in 2022, which will not be paid until 2023. (a) Compute 2022 cash-basis net income. Cash-basis net income $ (b) Compute 2022 accrual-basis net income. Accrual-basis net income $

Your Answer Correct Answer Crane Industries collected $106,000 from customers in 2022. Of the amount collected, $26,000 was for services performed in 2021. In addition, Crane performed services worth $42,000 in 2022, which will not be collected until 2023. Crane Industries also paid $72,700 for expenses in 2022. Of the amount paid, $30,300 was for expenses incurred on account in 2021. In addition, Crane incurred $41,000 of expenses in 2022, which will not be paid until 2023. (a) Compute 2022 cash-basis net income. Cash-basis net income $ (b) Compute 2022 accrual-basis net income. Accrual-basis net income $

Cornerstones of Financial Accounting

4th Edition

ISBN:9781337690881

Author:Jay Rich, Jeff Jones

Publisher:Jay Rich, Jeff Jones

Chapter3: Accrual Accounting

Section: Chapter Questions

Problem 2MCQ: In December 2019, Swanstrom Inc. receives a cash payment of $3,500 for services performed in...

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