Logo
Home Study Material Contact Search
AI Chat FREE
  1. business
  2. accounting
  3. problem 1: cash to accrual: (20 points) 327 coffee

Problem 1: Cash to Accrual: (20 Points) 327 Coffee Express maintains its records on the...

70.2K

Verified Solution

Question

Accounting

image

image

Problem 1: Cash to Accrual: (20 Points) 327 Coffee Express maintains its records on the cash basis. You have been hired to convert its cash basis income statement to the accrual basis. The cash basis income statement, along with additional information, follows: 327 Coffee Express (sole proprietorship) Income Statement (Cash Basis) For the Year Ended December 31, 2020 $425,000 Cash receipts from customers Cash payments: Coffee Salaries and wages Insurance Net income $170,000 90,000 40,000 300,000 $125,000 Additional information: Accounts receivable Inventory - Coffee Salaries and Wages payable Prepaid insurance Accumulated depreciation Accounts payable - Coffee suppliers Balances at 12/31 2020 2019 $55,000 $30,000 50,000 40,000 19,000 24,000 8,000 9,000 95,000 80,000 9,000 3,000 No plant assets were sold during 2020. Required: Prepare a multi-step income statement using the accrual basis of accounting on the next page. You have space below, and at the top of the next page to make your calculations. Do not put your calculations in the body of the Income Statement

Answer & Explanation Solved by verified expert
Get Answers to Unlimited Questions

Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!

Membership Benefits:
  • Unlimited Question Access with detailed Answers
  • Zin AI - 3 Million Words
  • 10 Dall-E 3 Images
  • 20 Plot Generations
  • Conversation with Dialogue Memory
  • No Ads, Ever!
  • Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!
Become a Member

Other questions asked by students