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Unformatted text preview: [Type text] [Type text] Module 3.2 Part A Question 1 Rainy Inc. has asked for your help in translating from accrual to cash basis net income. Which of the following items should be included when determining the companies cash basis net income for 2009? Insurance for 2010, paid on December 15, 2009 Prepaid Insurance Salary expense for the period 12/28/2009-12/31/2009 Accrued Salary Expense accrued on December 31, 2009. The next pay period ends on January 2, 2010. those are the only items that should be included in 2009 Cash Basis Net Income. Depreciation on factory equipment for the year Depreciation Expense ended December 31, 2009. Supplies expense for supplies purchased in 2008 Supplies Expense but used up in 2009. Unearned Revenue received on December 19, 2009 Unearned Revenue for work to be performed in January 2010. Revenue for work performed during December 2009, Accrued Revenue accrued on December 31, 2009, for which the company expects to be paid when the job is completed in January 2010....
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This note was uploaded on 07/16/2011 for the course ACCT 212 taught by Professor Song during the Spring '11 term at DeVry Kansas City.
- Spring '11
- Financial Accounting