50.1K

Verified Solution

Link Copied!

October 1 Prepaid insurance for October through December, $2,250. October 4 October 5 October 8 October 11 October 19 October 24 October 26 October 29 October 31 October 31 October 31 Purchased office furniture for cash, $6,000. Performed services and received cash, $1,500. Paid advertising expense, $200. Performed service on account, $3,500. Purchased computer on account, $1,600. Collected for October 11 service. Paid account payable from October 19. Paid salary expense, $1,200. Adjusted for October insurance expense (see October 1). Earned revenue of $500 that was collected in advance back in September. Recorded October depreciation expense on all fixed assets, $408. Requirements 1. Show how each transaction would be handled (in terms of recognizing revenues and expenses) using the cash basis and the accrual basis. 2. Calculate October income (loss) before tax under each accounting method. 3. Indicate which measure of net income c net loss is preferable. Use the transactions on October 11 and October 24 to explain. Print Done -X Requirement 1. Show how each transaction would be handied using the cash basis and the accrual basis. Under each column, give the amount of revenue or expense for October using the cash basis and the accrual basis. (Enter "0" for any transactions that do not affect revenues or expenses. Use parentheses or a minis si expenses or losses. Round your answers to the nearest whole dollar) Amount of Revenue (Expense) for October Cash Basis Revenue or (Expense) Accrual Basis Revenue or (Expense) ck the soon to view the transactions. Read the fequirement Date October 1 4 6 20 19 24 8 11 20 29 31 31 31 2555 Set lax Requirement 3. Indice which measure of tortosis preferable Use the tober 11 and October 14 The Form October 11, the company On October 24, $3.500 of revenue and has at The sected heated by the October 11. seconds because the company's cured back on Odder 11. The tasis was a cash received, on October 24the venue. This is

Answer & Explanation Solved by verified expert

See Answer