HW1.docx - 1.. 1 Checkfor$1,200receivedJanuary4,Year2,...

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1. What is the amount of income to be reported by Mr. X in Year 2 under the cash  method of accounting for the following items? 1. Check for $1,200 received January 4, Year 2, for services rendered in December Year 1. 2. Check for $900 received December 26, Year 2, for services rendered in October, Year 2; did not cash until January 5, Year 3. 3. Dividend check for $500. Check was dated December 31, Year 2, but it is the  practice of the issuing corporation to mail checks so they will not be received until  January of the following year. 4. Check for $600 received on April 1, Year 2, for interest on corporate bonds held  for the period October 1, Year 1, through March 31, Year 2. Interest is paid semi-
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