coolatina101
New member
I have been stuck on this problem sense yesterday and my teacher is not getting back to me, so here it is:
Beagle Inc., a dog apparel merchandise company was founded on January 1, 2009. The company made $180,000 in sales during its first year of operations, of which 5% were sales on account during December 2009 that remained unpaid at the end of the year.
The company also paid 60,000 in operating expenses during the year and prepaid its $10,000 insurance bill for 2010 in December 2009. Additionally, Beagle made the following adjusting entries on December 31, 2009.
Recorded DEPR Expense of $15,000
Accrued Salaries Payable $ 1,500 (the next payday is January 3, 2010)
Transferred $4,000 of the Unearned Revenue into the Sales Revenue account
What is Beagles cash basis net income?
so here is my answer...and I know it is wrong:
Cash Basis Revenue = 180,000+9000-4,000= 185,000
Cash Basis Income = 60,000+10,000 =70,000
So please help me get it right, because it feels as if I am going to pull my hair out...thanks in advance.
Beagle Inc., a dog apparel merchandise company was founded on January 1, 2009. The company made $180,000 in sales during its first year of operations, of which 5% were sales on account during December 2009 that remained unpaid at the end of the year.
The company also paid 60,000 in operating expenses during the year and prepaid its $10,000 insurance bill for 2010 in December 2009. Additionally, Beagle made the following adjusting entries on December 31, 2009.
Recorded DEPR Expense of $15,000
Accrued Salaries Payable $ 1,500 (the next payday is January 3, 2010)
Transferred $4,000 of the Unearned Revenue into the Sales Revenue account
What is Beagles cash basis net income?
so here is my answer...and I know it is wrong:
Cash Basis Revenue = 180,000+9000-4,000= 185,000
Cash Basis Income = 60,000+10,000 =70,000
So please help me get it right, because it feels as if I am going to pull my hair out...thanks in advance.