Daube Company's operations for the month of July are summarized as follows:A. Provided $10,000 of services on account. B. Received $8,000 cash from customers for services provided in July. C. Received $2,000 cash for services to be provided in August. D. Received $6,000 cash from customers on account for services provided in June. E. Paid June's warehouse rental bill on account in the amount of $2,000. F. Received July's warehouse rental bill of $3,000; set it aside to be recorded at a later date. Required: a. Determine the net income for July using the cash basis of accounting. b. Determine the net income for July using the accrual basis of accounting.
What will be an ideal response?
a.
Net income = Cash received - Cash paid
$8,000 + $2,000 + $6,000 - 2,000 = $14,000
b.
Net income = Revenues - Expenses
($10,000 + $8,000) - 3,000 = $15,000
You might also like to view...
Sarah-Anne is going to make a presentation to the board. She is interested in a promotion and is considering doing a lot of internal self-enhancement to help with her impression management. This technique will most likely leave the board feeling ______.
A. she is the right person for the job. B. she is unintelligent C. she is ready for the next step D. she is an excellent presenter
Which of the following group of companies are all examples of a merchandising business?
A) Delta Airlines, Marriott, Gap B) Gap, Amazon, NIKE C) GameStop, Sony, Dell D) GameStop, Best Buy, Gap
I have not been able to reach Carolyn by phone or email
A) I; have been able B) I; have been C) Carolyn; have been D) I; have been/reach
The centerpiece of Cognizant Technology Solution's operations is the company's innovative ________________ business model.
A. insource-outsource B. offshore-onshore C. global-local D. foreign-domestic