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

Question

Business

Charlee Morrow

28 January, 07:31

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

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Arjun Park · Answer 1

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