Question

Jorge Company had the following transactions during 2017. • Sales of $4,500 on account • Collected $2,000 for services to be performed in 2018 • Paid $1,325 cash in salaries • Purchased airline tickets for $250 in December for a trip to take place in 2018 What is Jorge’s 2017 net income using cash-basis accounting

Answer 1

Answer:

Ne Income 425

Explanation:

Revenue                 2000

Salaries                  1325

Travel expenses   250

Net Income           425

The cash basis is a method of recording accounting transactions for revenue and expenses only when the corresponding cash is received or payments are made