Jules & Associates had the following information available related to revenues and expenses for the current period: Services provided for cash - $123,000 Services provided on account - $240,000 Expenses paid in cash - $140,000 Expenses incurred on account - $42,000 Assuming no subsequent collection or payment for revenues and expenses on account, what is Jules & Associates net income under both the cash and accrual basis of accounting?

Question

Business

Finley Andersen

19 May, 00:45

Jules & Associates had the following information available related to revenues and expenses for the current period: Services provided for cash - $123,000 Services provided on account - $240,000 Expenses paid in cash - $140,000 Expenses incurred on account - $42,000 Assuming no subsequent collection or payment for revenues and expenses on account, what is Jules & Associates net income under both the cash and accrual basis of accounting?

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Answers (1)

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Myla Cherry · Answer 1

Net income in cash = - $17,000

Net income of accounting = $ 198,000

Explanation:

$123,000 service provided for cash

-$140,000 Expenses paid in Cash

= - $17,000 Net income in cash

$240,000 Services provided on account

-$42,000 Expenses on account

=$198.000 Net Income of accounting