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.