ARNOLD maintains its accounting records on the cash basis. During 2020, he collected P185,000 from his clients and paid P92,000 in expenses. Upon examination of additional evidence, the following information was obtained: 1/01/20 12/31/20 Accounts receivable Unearned revenues Accrued expenses Prepaid expenses Requirements: 1) Total revenue in 2020. 2) Total expense for 2020. 3) Correct net income for 2020. 9,000 7,000 3,000 5,000 15,000 4,000 2,000 16,000

ARNOLD maintains its accounting records on the cash basis. During 2020, he collected P185,000 from his clients and paid P92,000 in expenses. Upon examination of additional evidence, the following information was obtained: 1/01/20 12/31/20 Accounts receivable Unearned revenues Accrued expenses Prepaid expenses Requirements: 1) Total revenue in 2020. 2) Total expense for 2020. 3) Correct net income for 2020. 9,000 7,000 3,000 5,000 15,000 4,000 2,000 16,000

SWFT Essntl Tax Individ/Bus Entities 2020

23rd Edition

ISBN:9780357391266

Author:Nellen

Publisher:Nellen

Chapter12: Corporations: Organization, Capital Structure, And Operating Rules

Section: Chapter Questions

Problem 34P

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