B-03.10 Problem

B-03.10 Problem - $1,000 in prepaid rent. Rent expense on a...

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B-03.10 Evaluate the following items, and determine the correct amount to report on the income statement for each, using the accrual basis of accounting for the referenced period of time. Revenues A Company had beginning accounts receivable of $8,000. The company reported cash basis revenues of $100,000. The ending accounts receivable amounted to $18,000. Supplies B Company purchased $25,000 of supplies. Supplies on hand decreased by $5,000 during the period. Rent C Company started the year with no prepaid rent, and ended the year with
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Unformatted text preview: $1,000 in prepaid rent. Rent expense on a cash basis was $13,000. Equipment A the beginning of the year, D Company purchased and expensed an item of equipment for $20,000. The equipment has a 4-year life, and will be worthless after four years. Wages There were no wages payable at the beginning of the year. E Company paid $145,000 in wages during the year, and owed an additional $12,000 at year's end....
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