In its first year of operations, 2023, Bridgeport Corp. invoiced $181,000 in service revenue. Of that amount, $25,000 was still owing from customers at the end of year. In 2023, Bridgeport incurred various operating expenses totalling $86,000, of which $75,000 was paid in cash. Salaries and wages paid to employees totalled $65,000 and $3, 100 was still owing at the end of the year. In addition, Bridgeport prepaid $4, 700 for insurance coverage that covered the last half of 2023 and the first half of 2024. Bridgeport estimates it will owe $9, 900 in income tax when it files its corporate income tax return after its 2023 year end. (a) Calculate the net income for 2023 under the accrual basis of accounting

In its first year of operations, 2023, Bridgeport Corp. invoiced $181,000 in service revenue. Of that amount, $25,000 was still owing from customers at the end of year. In 2023, Bridgeport incurred various operating expenses totalling $86,000, of which $75,000 was paid in cash. Salaries and wages paid to employees totalled $65,000 and $3, 100 was still owing at the end of the year. In addition, Bridgeport prepaid $4, 700 for insurance coverage that covered the last half of 2023 and the first half of 2024. Bridgeport estimates it will owe $9, 900 in income tax when it files its corporate income tax return after its 2023 year end. (a) Calculate the net income for 2023 under the accrual basis of accounting

SWFT Comprehensive Volume 2019

42nd Edition

ISBN:9780357233306

Author:Maloney

Publisher:Maloney

Chapter6: Deductions And Losses: In General

Section: Chapter Questions

Problem 56P

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