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Unformatted text preview: a. $75,000 b. $150,000 c. $220,000 d. $450,000 e. None of the above 3. A company performed $300,000 in services in November. They received $175,000 in cash; the remaining $125,000 was collected in December. Employees earned $100,000 in November, of which the company paid $80,000. The remaining $20,000 was paid in December. If the company uses the accrual basis of accounting, what is the amount of profit on its income statement in December? a. $155,000 b. $105,000 c. $95,000 d. $0 e. none of the above 201 Accrual Accounting 4. A company performed $400,000 in services in October. They received $250,000 in cash, the remaining $150,000 was collected in November. Employees earned $200,000 in October, of which the company paid $120,000. The remaining $80,000 was paid in November. If the company uses the accrual basis of accounting, what is the amount of profit October? a. $200,000 b. $130,000 c. $70,000 d. $0 e. None of the above...
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This note was uploaded on 03/12/2010 for the course ACCY 201 taught by Professor Susancurtis during the Fall '09 term at University of Illinois, Urbana Champaign.
- Fall '09