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LekaFEV [45]
3 years ago
5

Peace of mind provides​ house-sitting for people while they are away on vacation. Some of its customers pay immediately after th

e job is finished. Some customers ask that the business send them a bill. As of the end of the​ year, Peace of Mind has collected $900 from​ cash-paying customers. Peace of MindPeace of Mind​'s remaining customers owe the business $1,200.
How much service revenue would Peace of MindPeace of Mind have for the year under the

a. cash​ basis?

b. accrual​ basis?

A. under the cash basis, Peace of mind will record $_______ of service revenue for the year.

B. Under the accrual basis, Peace of mind will record $_______ of service revenue for the year.
Business
1 answer:
Svet_ta [14]3 years ago
4 0

Answer:

a. Cash basis - Service revenue is $900

b. Accrual basis - Service revenue is $2,100 (which is $1200 + $900)

Explanation:

In accounting, there are 2 basis for recognizing transactions; these are cash basis and accrual basis.

In cash basis, sales and expenses are not recorded unless cash has been collected and paid respectively. In the accrual basis of accounting, expenses and sales are recorded when incurred and earned respectively.

Revenue earned under the accrual basis would therefore include the revenue for which cash has been collected and those for which cash is yet to be collected.

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Answer:

0.02

Explanation:

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3 years ago
Current disposable income held to buy consumption goods in the future is referred to as:______.
maxonik [38]

The current disposable income held to buy consumption goods in the future is referred to as saving.

Consumables are goods that are best suited for their end use. In other words, the end-user of consumer goods is the consumer themselves, and capital goods are the goods used to manufacture consumer goods.

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3 0
2 years ago
Production and sales estimates for June are as follows:
anastassius [24]

Answer:

Production= 13,000

Explanation:

Giving the following information:

Estimated inventory (units), June 1 18,500

Desired inventory (units), June 30 19,000

Expected sales volume (units):

Area X 3,000

Area Y 4,000

Area Z 5,500

Total= 12,500

To calculate the production for the period, we need to use the following formula:

Production= sales + desired ending inventory - beginning inventory

Production= 12,500 + 19,000 - 18,500

Production= 13,000

5 0
3 years ago
In a recent year Sunland Company had net income of $360000, interest expense of $72000, and a times interest earned of 10. What
Otrada [13]

Answer:

$648,000

Explanation:

Given that;

Net income = $360,000

Interest expense = $72,000

Times interest earned = 10

Net Income + Interest expense + Tax expense ÷ Interest expense = Times interest earned.

($360,000 + $72,000 + Tax expense) /$72,000 = 10

Tax expense = $288,000

Therefore;

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= Net income + Tax expense

= $360,000 + $288,000

= $648,000

4 0
3 years ago
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