E3-3 (LO 1), AP Primo Industries collected $105,000 from customers in 2022. Of the amount collected, $25,000 was for services performed in 2021. In addition, Primo performed services worth $40,000 in 2022, which will not be collected until 2023. Primo Industries also paid $72,000 for expenses in 2022. Of the amount paid, $30,000 was for expenses incurred on account in 2021. In addition, Primo incurred $42,000 of expenses in 2022, which will not be paid until 2023. Instructions a. Compute 2022 cash-basis net income. b. Compute 2022 accrual-basis net income.
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- John Industries collected $105000 from customers in 2020. Of the amount collected, $24700 was for services performed in 2019. In addition, John performed services worth $39400 in 2020, which will not be collected until 2021. John Industries also paid $71200 for expenses in 2020. Of the amount paid, $29600 was expenses incurred on account in 2019. In addition, John incurred $41400 of expenses in 2020, which will not be paid until 2021. Compute 2020 accrual-basis net income.John Industries collected $105000 from customers in 2020. Of the amount collected, $24700 was for services performed in 2019. In addition, John performed services worth $39400 in 2020, which will not be collected until 2021. John Industries also paid $71200 for expenses in 2020. Of the amount paid, $29600 was expenses incurred on account in 2019. In addition, John incurred $41400 of expenses in 2020, which will not be paid until 2021. Compute 2020 cash-basis net income.The following expenses were recognized by CBA Co., a retailer, during 2020: Interest expense: P120,000 Telephone expense: P95,000 Loss on sale of store equipment: P47,000 Legal fees: P74,000 Officers’ salaries: P115,000. How much should CBA Co. report as general and administrative expenses for 2020?
- The following expenses were recognized by CBA Co., a retailer, during 2020: Interest expense: P120,000 Telephone expense: P95,000 Loss on sale of store equipment: P47,000 Legal fees: P74,000 Officers’ salaries: P115,000. How much should CBA Co. report as general and administrative expenses for 2020? a. P210,000 b. P284,000 c. P330,000 d. P404,000 e. answer not givenThe following expenses were recognized by CBA Co., a retailer, during 2020: Interest expense: P120,000 Telephone expense: P95,000 Loss on sale of store equipment: P47,000 Legal fees: P74,000 Officers’ salaries: P115,000. How much should CBA Co. report as general and administrative expenses for 2020? * P210,000 P284,000 P330,000 P404,000 answer not givenThe following transactions occurred during December 31, 2021, for the Microchip Company. On October 1, 2021, Microchip lent $90,000 to another company. A note was signed with principal and 8% interest to be paid on September 30, 2022. On November 1, 2021, the company paid its landlord $6,000 representing rent for the months of November through January. Prepaid rent was debited. On August 1, 2021, collected $12,000 in advance rent from another company that is renting a portion of Microchip’s factory. The $12,000 represents one year’s rent and the entire amount was credited to deferred rent revenue. Depreciation on office equipment is $4,500 for the year. Vacation pay for the year that had been earned by employees but not paid to them or recorded is $8,000. The company records vacation pay as salaries expense. Microchip began the year with $2,000 in its asset account, supplies. During the year, $6,500 in supplies were purchased and debited to supplies. At year-end, supplies costing…
- Zuhoor Muscat Company reported the following transactions during the year 2020: collected RO 45,000 cash from customers for services provided during 2020 and received RO 45,000 from customers for services provided during 2019. Additionally, Zuhoor Muscat Company provided services to customers on account during 2020 for a total of RO 90,0000 and accepted RO 55,000 cash for services to be performed in 2021. If Zuhoor Muscat Company is applying accrual accounting, then the effect of the above transactions on its net income at year-end 2020 will be:3. LeAnne Company had the ff transaction during 2021: • Sales of 9000 on account Collected 4000 for services to be performed Paid 260 cash in salaries Purchased airline tickets for 500 in Dec. for a trip to take place in 2022 What is the company's 2021 net income using cash basis accounting?Wildhorse Co. had the following transactions during 2021:• Sales of $9720 on account• Collected $4320 for services to be performed in 2022• Paid $4050 cash in salaries for 2021• Purchased airline tickets for $540 in December for a trip to take place in 2022What is Wildhorse's 2021 net income using accrual accounting? $5670 $9990 $6210 $10530
- The following events occur for The Underwood Corporation during 2021 and 2022, its first two years of operations.June 12, 2021 Provide services to customers on account for $41,000.September 17, 2021 Receive $25,000 from customers on account.December 31, 2021 Estimate that 45% of accounts receivable at the end of the year will not be received.March 4, 2022 Provide services to customers on account for $56,000.May 20, 2022 Receive $10,000 from customers for services provided in 2021.July 2, 2022 Write off the remaining amounts owed from services provided in 2021.October 19, 2022 Receive $45,000 from customers for services provided in 2022.December 31, 2022 Estimate that 45% of accounts receivable at the end of the year will not be received.Required:1. Record transactions for each date.2. Post transactions to the following accounts: Cash, Accounts Receivable, and Allowance for Uncollectible Accounts.3. Calculate net accounts receivable at the end of 2021 and 2022.On May 1, 2022, the amount of Jackson Samuel’s capital in Jackson Services Company was $101,000. During May, he withdrew $15,100 from the business. The amounts of the various assets, liabilities, revenues, and expenses are as follows: Accounts payable $ 8,900 Accounts receivable 27,950 Cash 11,390 Fees earned 73,800 Insurance expense 1,475 Land 74,400 Miscellaneous expense 1,510 Prepaid insurance 2,000 Rent expense 6,000 Salary expense 35,300 Supplies 3,950 Supplies expense 825 Utilities expense 3,800 Present, in good form, including complete titles, (a) an income statement for May, (b) a statement of owner's equity for May, and (c) a balance sheet as of May 31. (a) Income Statement (b) Statement of Owner’s Equity…Mr. Wa Is started a service business on October 1,2020 with an initial investment of P400,000. During 2020, he provided P800,000 worth of services to customers of which P200,000 were collected during January 2021. Expenses incurred amounted to P400,000 including P100,000 which were paid during January 2021. Mr. Wa Is withdrew P60,000 during 2020.How much should be the capital balance of Mr. Wa Is on December 31,2020 under the cash basis of accounting? *A. P640,000B. P740,000C. P800,000D. P840,000E. answer not given