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Exercise 3-42 Revenue and Expense Recognition Omega Transportation Inc., headquartered in Atlanta, Georgia, uses accrual-basis accounting and engaged in the following transactions: • billed customers $3,580,000 for transportation services • collected cash from customers in the amount of $2,479,000 • purchased fuel supplies for $1,655.000 cash • used fuel supplies that cost $1,598,240 • employees earned salaries of $425,160 • paid employees $413,380 cash for salaries Required: Determine the amount of sales revenue and total expenses for Omega’s income statement.

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Cornerstones of Financial Accounti...

4th Edition
Jay Rich + 1 other
Publisher: Cengage Learning
ISBN: 9781337690881
BuyFind

Cornerstones of Financial Accounti...

4th Edition
Jay Rich + 1 other
Publisher: Cengage Learning
ISBN: 9781337690881

Solutions

Chapter
Section
Chapter 3, Problem 42E
Textbook Problem

Exercise 3-42 Revenue and Expense Recognition

Omega Transportation Inc., headquartered in Atlanta, Georgia, uses accrual-basis accounting and engaged in the following transactions:

• billed customers $3,580,000 for transportation services

• collected cash from customers in the amount of $2,479,000

• purchased fuel supplies for $1,655.000 cash

• used fuel supplies that cost $1,598,240

• employees earned salaries of $425,160

• paid employees $413,380 cash for salaries

Required:

Determine the amount of sales revenue and total expenses for Omega’s income statement.

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Chapter 3 Solutions

Cornerstones of Financial Accounting
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