201 FS 10 Accrual Accounting--Key

201 FS 10 Accrual Accounting--Key - a. $75,000 b. $150,000...

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201 Accrual Accounting 1. Rodman Inc. performed $400,000 in services in the month of October. The company received $300,000 in October and the remaining balance in November. Rodman employees earned $250,000 in wages performing the service. The company paid $200,000 in October and the remainder in November. If the company uses the accrual basis of accounting, how much profit did the company report in November? a. $0 b. $50,000 c. $100,000 d. $150,000 e. None of the above Itun’s bookkeeper gathered the information below. March April Services performed Wages earned Services performed Wages earned $400,000 $250,000 $480,000 $300,000 Cash collections for services performed in Cash collections for services performed in February March March April $175,000 $275,000 $225,000 $325,000 Cash payments for wages earned in Cash payments for wages earned in February March March April $30,000 $200,000 $50,000 $220,000 2. If Itun uses the accrual method of accounting, based on the information above only, how much will Itun report as income in March?
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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.

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201 FS 10 Accrual Accounting--Key - a. $75,000 b. $150,000...

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