Intermediate Accounting (2nd Edition)
Intermediate Accounting (2nd Edition)
2nd Edition
ISBN: 9780134730370
Author: Elizabeth A. Gordon, Jana S. Raedy, Alexander J. Sannella
Publisher: PEARSON
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Chapter 2, Problem 2.20BE

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

  1. a. VG provided consulting services and billed clients $2,000.
  2. b. VG collected $1,500 for consulting services performed m the prior month.
  3. c. VG paid its monthly electric bill of $300.
  4. d. Employees who worked for VG were not paid for services performed. Next month they will be paid $850.
  5. 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.

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Intermediate Accounting (2nd Edition)

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