John Industries collected $105000 from customers in 2020. Of the amount collected, $24700 was for services performed in 2019. In addition, John performed services worth $39400 in 2020, which will not be collected until 2021. John Industries also paid $71200 for expenses in 2020. Of the amount paid, $29600 was expenses incurred on account in 2019. In addition, John incurred $41400 of expenses in 2020, which will not be paid until 2021. Compute 2020 accrual-basis net income.
John Industries collected $105000 from customers in 2020. Of the amount collected, $24700 was for services performed in 2019. In addition, John performed services worth $39400 in 2020, which will not be collected until 2021. John Industries also paid $71200 for expenses in 2020. Of the amount paid, $29600 was expenses incurred on account in 2019. In addition, John incurred $41400 of expenses in 2020, which will not be paid until 2021. Compute 2020 accrual-basis net income.
Cornerstones of Financial Accounting
4th Edition
ISBN:9781337690881
Author:Jay Rich, Jeff Jones
Publisher:Jay Rich, Jeff Jones
Chapter3: Accrual Accounting
Section: Chapter Questions
Problem 2MCQ: In December 2019, Swanstrom Inc. receives a cash payment of $3,500 for services performed in...
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John Industries collected $105000 from customers in 2020. Of the amount collected, $24700 was for services performed in 2019. In addition, John performed services worth $39400 in 2020, which will not be collected until 2021.
John Industries also paid $71200 for expenses in 2020. Of the amount paid, $29600 was expenses incurred on account in 2019. In addition, John incurred $41400 of expenses in 2020, which will not be paid until 2021.
Compute 2020 accrual-basis net income.
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