Answer:
$11,400
Explanation:
Income Statement
For the year ended December 31, 2019
Particulars Amount
<u>Revenues</u>
Service revenue $37,900
<u>Expense</u>
Salaries & wages expense $16,000
Insurance expense $2,900
Rent expense $3,400
Supplies expense $2,500
Depreciation expense <u>$1,700</u>
Total expenses <u>$26,500</u>
Net income (loss) <u>$11,400</u>
Answer:
C. $12,000 under the cash method and $4,000 under the accrual method
Explanation:
Under the cash basis of accounting, whenever an amount is received or paid, it is recognized in the books of accounts
Whereas, on the accrual basis of accounting, the cash received / payment or not it is recognized in the books of accounts. It is recorded when it is earned not when it is received or paid.
So, by this above information
The cash method would recognize $12,000 ($1,000 × 12 months)
Whereas
The accrual method would recognize $4,000 ($1,000 × 4 months)
We assume the books are closed on December, 31
Answer:
Adjusted cash balance : $25850
Explanation:
The goal of a reconciliation statement is to ascertain the differences between the banks records and the depositor’s records and make accounting changes as deemed appropriate. There is a general flow that is used to make the correcting entries:
1. The process flow starts with the bank’s ending cash balance
2. Add any deposits made by the company to the bank that are in transit
3. Deduct any cheques that are uncleared by the bank
4. Add or deduct any other differences available as necessary
5. In the company bank records, once again start with the ending balance
6. Add interests earned
7. Deduct any bank service fees, penalties and NSF (Non-Sufficient Funds) cheques.
8. Add or deduct any other differences available as necessary
At the end of this process, it is likely that both accounts would be equal and tally.
Please refer attached table for details on the calculation.
<span>The answer in the given statement above is the accounts
receivable conversion. This type of process allows an individual to receive the
amount that he or she converts from paper check into a real amount when scanned
under an electronic machine in which is being described above.</span>
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