Pearson eText Intermediate Accounting -- Instant Access (Pearson+)

3rd Edition

ISBN: 9780136946649

Author: Elizabeth Gordon, Jana Raedy

Publisher: PEARSON+

See similar textbooks

Concept explainers

Reporting Cash Flows

Reporting of cash flows means a statement of cash flow which is a financial statement. A cash flow statement is prepared by gathering all the data regarding inflows and outflows of a company. The cash flow statement includes cash inflows and outflows fro…

Balance Sheet

A balance sheet is an integral part of the set of financial statements of an organization that reports the assets, liabilities, equity (shareholding) capital, other short and long-term debts, along with other related items. A balance sheet is one of the …

Financial Statements

Financial statements are written records of an organization which provide a true and real picture of business activities. It shows the financial position and the operating performance of the company. It is prepared at the end of every financial cycle. It…

Owner's Capital

Before we begin to understand what Owner’s capital is and what Equity financing is to an organization, it is important to understand some basic accounting terminologies. A double-entry bookkeeping system Normal account balances are those which are expect…

Videos

Textbook Question

Chapter 2, Problem 2.19BE

Cash versus Accrual Bases of Accounting. The following events occurred at VG Consulting during the most recent month.

a. VG provided consulting services and billed clients $2,000.
b. VG collected $1,500 for consulting services performed m the prior month.
c. VG paid its monthly electric bill of $300.
d. Employees who worked for VG were not paid for services performed. Next month they will be paid $850.
e. VG collected fees of $700 for services to be performed in the following month.

For each event, determine the revenue or expense under the cash and accrual bases of accounting.

Expert Solution & Answer

Want to see the full answer?

Check out a sample textbook solution

See solution

Chapter 2, Problem 2.18BE

Chapter 2, Problem 2.20BE

Students have asked these similar questions

The industrial enterprise "HUANG S.A." purchased a sorting and packaging machine from a foreign company on 1/4/2017 at a cost of €500,000. The useful life of the machine was estimated by the Management at ten (10) years, while the residual value was estimated at zero. For the transportation of the machine from abroad to the company's factory, the amount of €20,000 was paid on 15/4/2017. As the insurance coverage of the machine during transportation was the responsibility of the selling company, HUANG S.A. proceeded to insure the machine from 16/4/2017 to 15/4/2018, paying the amount of €1,200. The delivery took place on 15/4/2017. As adequate ventilation of the multifunction device is essential for its proper operation, the company fitted an air duct on the multifunction device. The cost of the air duct amounted to €2,000 and was paid on 20/4/2017. On 25/4/2017, an external electrician was paid €5,000 for the electrical connection of the device. The company also paid €5,000 to an…

I need answer typing clear urjent no chatgpt used pls i will give 5 Upvotes.only typing .

Chapter 2 Solutions

Pearson eText Intermediate Accounting -- Instant Access (Pearson+)

Ch. 2 - Prob. 2.1Q Ch. 2 - Why is a conceptual framework of accounting...Ch. 2 - Prob. 2.3Q Ch. 2 - Prob. 2.4Q Ch. 2 - Prob. 2.5Q Ch. 2 - Prob. 2.6Q Ch. 2 - What is predictive value?Ch. 2 - Prob. 2.8Q Ch. 2 - When is financial information considered...Ch. 2 - Prob. 2.10Q

Ch. 2 - Prob. 2.11Q Ch. 2 - Prob. 2.12Q Ch. 2 - What is the recognition principle and when is an...Ch. 2 - What is the revenue recognition principle and when...Ch. 2 - Prob. 2.15Q Ch. 2 - When are expenses recognized under IFRS?Ch. 2 - How are transactions recorded under accrual...Ch. 2 - Prob. 2.18Q Ch. 2 - Prob. 2.19Q Ch. 2 - Prob. 2.20Q Ch. 2 - Prob. 2.21Q Ch. 2 - Prob. 2.22Q Ch. 2 - Prob. 2.23Q Ch. 2 - Prob. 2.1BE Ch. 2 - Prob. 2.2BE Ch. 2 - Objective of Financial Reporting. Explain the...Ch. 2 - Prob. 2.4BE Ch. 2 - Fundamental and Enhancing Characteristics....Ch. 2 - Prob. 2.6BE Ch. 2 - Prob. 2.7BE Ch. 2 - Prob. 2.8BE Ch. 2 - Fundamental and Enhancing Characteristics....Ch. 2 - Faithful Representation. Match the component of a...Ch. 2 - Prob. 2.11BE Ch. 2 - Prob. 2.12BE Ch. 2 - Expense Recognition. Discuss the three main...Ch. 2 - Element Definitions. Identify whether the...Ch. 2 - Prob. 2.15BE Ch. 2 - Element Definitions, U.S. GAAP, IFRS. Identify...Ch. 2 - Prob. 2.17BE Ch. 2 - Measurement Bases. Match the measurement basis...Ch. 2 - Cash versus Accrual Bases of Accounting. The...Ch. 2 - Prob. 2.20BE Ch. 2 - Prob. 2.21BE Ch. 2 - Assumptions in Financial Reporting. Indicate the...Ch. 2 - Conceptual Framework. Noeleen Auto Mall, Ltd....Ch. 2 - Qualitative Characteristics. Referring to the...Ch. 2 - Prob. 2.3E Ch. 2 - Prob. 2.4E Ch. 2 - Terms and Concepts. Complete the following...Ch. 2 - Prob. 2.6E Ch. 2 - Cash versus Accrual Bases of Accounting. Top Notch...Ch. 2 - Cash vs. Accrual. you are provided the following...

Knowledge Booster

Learn more about

Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.

Solution Summary: The author explains the cash and accrual bases of accounting for each event. Revenues and expenses are reported in the period in which they have occurred and not on cash basis.

Concept explainers

Videos

Want to see the full answer?

Chapter 2 Solutions