INTERMEDIATE ACCT.-MYLAB COMBO ACCESS
3rd Edition
ISBN: 9780137391707
Author: GORDON
Publisher: PEARSON
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Chapter 2, Problem 2.8E
Cash vs. Accrual. you are provided the following information for the Del Campo Consulting Associates.
| 2019 | 2018 | |
| Service revenue (accrual basis) | $250,000 | $185,000 |
| Cash collected from clients | 80,000 | 97,000 |
| Operating expenses: | ||
| Salary expense (accrual basis) | 12,000 | 16,500 |
| Purchased supplies for cash | 4,000 | 2,500 |
| Purchased supplies on account | 1,500 | 1,000 |
| 2,000 | 2,000 | |
| Rent paid in cash | 7,000 | 3,000 |
| Prepaid insurance | 5,500 | -0- |
Required:
Assume that all supplies purchased were used in operations in the year of purchase Rental payments pertain to rental space used in the year of payment.
- a. Prepare an income statement tor Del Campo tor 2019 and 2018 under both the cash and the accrual basis of accounting.
- b. Compute operating
cash flow for both years under cash and accrual bases.
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Santiago, Inc. has the following receipts during 2018:
From service billings to client
P400,000
Advances from clients
100,000
Total cash collection
P500,000
The P100,000 advances refer to services which will be rendered next year. Total uncollected billing increased from P100,000 on December 31, 2017 to P150,000 on December 31, 2018.
Compute the gross income using accrual basis.
P400,000
P500,000
P450,000
P550,000
Please answer asap , I really need help.
Chapter 2 Solutions
INTERMEDIATE ACCT.-MYLAB COMBO ACCESS
Ch. 2 - Prob. 2.1QCh. 2 - Why is a conceptual framework of accounting...Ch. 2 - Prob. 2.3QCh. 2 - Prob. 2.4QCh. 2 - Prob. 2.5QCh. 2 - Prob. 2.6QCh. 2 - What is predictive value?Ch. 2 - Prob. 2.8QCh. 2 - When is financial information considered...Ch. 2 - Prob. 2.10Q
Ch. 2 - Prob. 2.11QCh. 2 - Prob. 2.12QCh. 2 - What is the recognition principle and when is an...Ch. 2 - What is the revenue recognition principle and when...Ch. 2 - Prob. 2.15QCh. 2 - When are expenses recognized under IFRS?Ch. 2 - How are transactions recorded under accrual...Ch. 2 - Prob. 2.18QCh. 2 - Prob. 2.19QCh. 2 - Prob. 2.20QCh. 2 - Prob. 2.21QCh. 2 - Prob. 2.22QCh. 2 - Prob. 2.23QCh. 2 - Prob. 2.1BECh. 2 - Prob. 2.2BECh. 2 - Objective of Financial Reporting. Explain the...Ch. 2 - Prob. 2.4BECh. 2 - Fundamental and Enhancing Characteristics....Ch. 2 - Prob. 2.6BECh. 2 - Prob. 2.7BECh. 2 - Prob. 2.8BECh. 2 - Fundamental and Enhancing Characteristics....Ch. 2 - Faithful Representation. Match the component of a...Ch. 2 - Prob. 2.11BECh. 2 - Prob. 2.12BECh. 2 - Expense Recognition. Discuss the three main...Ch. 2 - Element Definitions. Identify whether the...Ch. 2 - Prob. 2.15BECh. 2 - Element Definitions, U.S. GAAP, IFRS. Identify...Ch. 2 - Prob. 2.17BECh. 2 - Measurement Bases. Match the measurement basis...Ch. 2 - Cash versus Accrual Bases of Accounting. The...Ch. 2 - Prob. 2.20BECh. 2 - Prob. 2.21BECh. 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. 2.3ECh. 2 - Prob. 2.4ECh. 2 - Terms and Concepts. Complete the following...Ch. 2 - Prob. 2.6ECh. 2 - Cash versus Accrual Bases of Accounting. Top Notch...Ch. 2 - Cash vs. Accrual. you are provided the following...
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