The Carrión-Carrión Law Firm offers legal services in the immigration area and operates under the cash and receipt accounting method ("cash basis"). During 2020, he represented 100 clients in Bankruptcy Court, the fees to each client were $ 1,000, and the 100 clients paid for his services in 2020. Likewise, the firm represented 50 additional clients during 2020, whose The fees were also $ 1,000 each, but these clients paid between January and February 2021. Determine: 1. What amount of income was made in 2020. Explain. 2. What amount of income is recognized in 2020. Explain.
The Carrión-Carrión Law Firm offers legal services in the immigration area and operates under the cash and receipt accounting method ("cash basis"). During 2020, he represented 100 clients in Bankruptcy Court, the fees to each client were $ 1,000, and the 100 clients paid for his services in 2020. Likewise, the firm represented 50 additional clients during 2020, whose The fees were also $ 1,000 each, but these clients paid between January and February 2021. Determine: 1. What amount of income was made in 2020. Explain. 2. What amount of income is recognized in 2020. Explain.
Chapter18: Accounting Periods And Methods
Section: Chapter Questions
Problem 30CE
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Transcribed Image Text:The Carrión-Carrión Law Firm offers legal
services in the immigration area and operates
under the cash and receipt accounting
method ("cash basis"). During 2020, he
represented 100 clients in Bankruptcy Court,
the fees to each client were $ 1,000, and the
100 clients paid for his services in 2020.
Likewise, the firm represented 50 additional
clients during 2020, whose The fees were
also $ 1,000 each, but these clients paid
between January and February 2021.
Determine:
1. What amount of income was made in 2020.
Explain.
2. What amount of income is recognized in
2020. Explain.
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