Cash and Accrual accounting: Cash basis reports revenue only when the cash is received and expenses when cash is paid out. Whereas the accrual basis reports revenue when the product or service is delivered to the customer, and the expenses are recognized when they are incurred irrespective of whether the cash for such expense is paid or not. The service revenue for the given transaction on a cash basis.

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Answer 1

Question

Chapter 3, Problem 3.2SE

a

To determine

Concept Introduction:

Cash and Accrual accounting: Cash basis reports revenue only when the cash is received and expenses when cash is paid out. Whereas the accrual basis reports revenue when the product or service is delivered to the customer, and the expenses are recognized when they are incurred irrespective of whether the cash for such expense is paid or not.

The service revenue for the given transaction on a cash basis.

b

To determine

Concept Introduction:

Cash and Accrual basis: The cash basis reports revenue only when the cash is received and expenses when cash is paid out. Whereas the accrual basis reports revenue when the product or service is delivered to the customer, and the expenses are recognized when they are incurred irrespective of whether the cash for such expense is paid or not.

The service revenue for the given transaction under an accrual basis.

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I am looking for the correct answer to this general accounting problem using valid accounting standards.

Trevor sells a stock for $12,400. The price at the time of purchase was $7,800. He paid a commission to his broker of $375. How much is Trevor's amount realized?

I need help with this general accounting question using standard accounting techniques.

Answer 2

Question

Chapter 3, Problem 3.2SE

a

To determine

Concept Introduction:

Cash and Accrual accounting: Cash basis reports revenue only when the cash is received and expenses when cash is paid out. Whereas the accrual basis reports revenue when the product or service is delivered to the customer, and the expenses are recognized when they are incurred irrespective of whether the cash for such expense is paid or not.

The service revenue for the given transaction on a cash basis.

b

To determine

Concept Introduction:

Cash and Accrual basis: The cash basis reports revenue only when the cash is received and expenses when cash is paid out. Whereas the accrual basis reports revenue when the product or service is delivered to the customer, and the expenses are recognized when they are incurred irrespective of whether the cash for such expense is paid or not.

The service revenue for the given transaction under an accrual basis.

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Answer 3

Question

Chapter 3, Problem 3.2SE

a

To determine

Concept Introduction:

Cash and Accrual accounting: Cash basis reports revenue only when the cash is received and expenses when cash is paid out. Whereas the accrual basis reports revenue when the product or service is delivered to the customer, and the expenses are recognized when they are incurred irrespective of whether the cash for such expense is paid or not.

The service revenue for the given transaction on a cash basis.

b

To determine

Concept Introduction:

Cash and Accrual basis: The cash basis reports revenue only when the cash is received and expenses when cash is paid out. Whereas the accrual basis reports revenue when the product or service is delivered to the customer, and the expenses are recognized when they are incurred irrespective of whether the cash for such expense is paid or not.

The service revenue for the given transaction under an accrual basis.

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Answer 4

Question

Chapter 3, Problem 3.2SE

a

To determine

Concept Introduction:

Cash and Accrual accounting: Cash basis reports revenue only when the cash is received and expenses when cash is paid out. Whereas the accrual basis reports revenue when the product or service is delivered to the customer, and the expenses are recognized when they are incurred irrespective of whether the cash for such expense is paid or not.

The service revenue for the given transaction on a cash basis.

b

To determine

Concept Introduction:

Cash and Accrual basis: The cash basis reports revenue only when the cash is received and expenses when cash is paid out. Whereas the accrual basis reports revenue when the product or service is delivered to the customer, and the expenses are recognized when they are incurred irrespective of whether the cash for such expense is paid or not.

The service revenue for the given transaction under an accrual basis.

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Answer 5

Chapter 3, Problem 3.2SE

a

To determine

Concept Introduction:

Cash and Accrual accounting: Cash basis reports revenue only when the cash is received and expenses when cash is paid out. Whereas the accrual basis reports revenue when the product or service is delivered to the customer, and the expenses are recognized when they are incurred irrespective of whether the cash for such expense is paid or not.

The service revenue for the given transaction on a cash basis.

b

To determine

Concept Introduction:

Cash and Accrual basis: The cash basis reports revenue only when the cash is received and expenses when cash is paid out. Whereas the accrual basis reports revenue when the product or service is delivered to the customer, and the expenses are recognized when they are incurred irrespective of whether the cash for such expense is paid or not.

The service revenue for the given transaction under an accrual basis.

Answer 6

Chapter 3, Problem 3.2SE

a

To determine

Concept Introduction:

Cash and Accrual accounting: Cash basis reports revenue only when the cash is received and expenses when cash is paid out. Whereas the accrual basis reports revenue when the product or service is delivered to the customer, and the expenses are recognized when they are incurred irrespective of whether the cash for such expense is paid or not.

The service revenue for the given transaction on a cash basis.

Answer 7

Chapter 3, Problem 3.2SE

a

To determine

Concept Introduction:

Cash and Accrual accounting: Cash basis reports revenue only when the cash is received and expenses when cash is paid out. Whereas the accrual basis reports revenue when the product or service is delivered to the customer, and the expenses are recognized when they are incurred irrespective of whether the cash for such expense is paid or not.

The service revenue for the given transaction on a cash basis.

Answer 8

b

To determine

Concept Introduction:

Cash and Accrual basis: The cash basis reports revenue only when the cash is received and expenses when cash is paid out. Whereas the accrual basis reports revenue when the product or service is delivered to the customer, and the expenses are recognized when they are incurred irrespective of whether the cash for such expense is paid or not.

The service revenue for the given transaction under an accrual basis.

Answer 9

b

To determine

Concept Introduction:

Cash and Accrual basis: The cash basis reports revenue only when the cash is received and expenses when cash is paid out. Whereas the accrual basis reports revenue when the product or service is delivered to the customer, and the expenses are recognized when they are incurred irrespective of whether the cash for such expense is paid or not.

The service revenue for the given transaction under an accrual basis.

Answer 10

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Answer 11

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Answer 12

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Answer 13

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