Question

Bill operates a proprietorship using the cash method of accounting, and this year he received the following: $150 in cash from a customer for services rendered this year a promise from a customer to pay $190 for services rendered this year tickets to a football game worth $225 as payment for services performed last year a check for $180 for services rendered this year that Bill forgot to cash How much income should Bill realize on Schedule C?

Answer 1

Answer:

$555

Explanation:

The cash method of accounting records revenue when cash is received,and when expenses are paid in cash.

Bill received the following cash:

1. $150 dollars in cash was from a customer.

2. tickets worth $225 as  payment for services performed last year.

3. $180 check for services rendered this year.

Bill's income on schedule c would be a summation of all payments received.

= $150 + $225 + $180

Bill would receive an income of $555