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For each of the following unrelated scenarios, show total expenses reported on the income statement for 20X0 under the cash basis v. accrual basis.   Cash basis Accrual basis In December 20X0, ByCo runs ads costing $30,000. ByCo receives the invoice but does not pay it until January 20X1.     On December 1, 20X0, KPT pays $2,400 for the next 12 months’ property insurance.     In December 20X0, Andre’s pays $400 to Pest Control for 4 months’ service. The first treatment will be in January 20X1.

For each of the following unrelated scenarios, show total expenses reported on the income statement for 20X0 under the cash basis v. accrual basis.   Cash basis Accrual basis In December 20X0, ByCo runs ads costing $30,000. ByCo receives the invoice but does not pay it until January 20X1.     On December 1, 20X0, KPT pays $2,400 for the next 12 months’ property insurance.     In December 20X0, Andre’s pays $400 to Pest Control for 4 months’ service. The first treatment will be in January 20X1.

Principles of Accounting Volume 1
Principles of Accounting Volume 1
19th Edition
ISBN:9781947172685
Author:OpenStax
Publisher:OpenStax
Chapter12: Current Liabilities
Section: Chapter Questions
Problem 5PB: Review the following transactions and prepare any necessary journal entries. A. On January 5, Bunnet...
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  1. For each of the following unrelated scenarios, show total expenses reported on the income statement for 20X0 under the cash basis v. accrual basis.

 

Cash basis

Accrual basis

In December 20X0, ByCo runs ads costing $30,000. ByCo receives the invoice but does not pay it until January 20X1.

 

 

On December 1, 20X0, KPT pays $2,400 for the next 12 months’ property insurance.

 

 

In December 20X0, Andre’s pays $400 to Pest Control for 4 months’ service. The first treatment will be in January 20X1.

 

 

 

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