Ex. 253 A Company Using The Cash Basis Of Accounting Reports

Ex. 253A company using the cash basis of accounting reports net income for 2014 of $45,460. If the company had used the accrual basis of accounting it would have reported the following year-end balances: 2014 2013 Accounts receivable $3,850 $5,100 Supplies 1,740 1,950 Salaries and wages payable 3,600 2,250 Other unpaid amounts 2,400 2,100Instructions: Determine the company’s net income under the accrual basis of accounting. Show your calculations. Use the column headings shown below.

Originally posted 2018-07-17 03:55:17. Republished by Blog Post Promoter

Ex. 253 A company using the cash basis of accounting reports

Ex. 253

A company using the cash basis of accounting reports net income for 2014 of $45,460. If the company had used the accrual basis of accounting it would have reported the following year-end balances:

2014 2013

Accounts receivable $3,850 $5,100

Supplies 1,740 1,950

Salaries and wages payable 3,600 2,250

Other unpaid amounts 2,400 2,100

Instructions:

Determine the company’s net income under the accrual basis of accounting. Show your calculations. Use the column headings shown below.