Total Paint Services earned $125,000 of service revenue during 2024. Of the $125,000 earned, the business received $99,000 in cash. The remaining amount, $26,000, was still owed by as of December 31. In addition, Total Paint Services incurred $75,000 of expenses during the year. As of December 31, $15,000 of the expenses still needed to be paid. In addition, Total Paint Services prepaid $8,000 cash in December 2024 for expenses incurred during the next year. 1. Determine the amount of service revenue and expenses for 2024 using a cash basis accounting system. 2. Determine the amount of service revenue and expenses for 2024 using an accrual basis accounting system. . Determine the amount of service revenue and expenses for 2024 using a cash basis accounting system. Cash basis Service revenue Expenses

Total Paint Services earned $125,000 of service revenue during 2024. Of the $125,000 earned, the business received $99,000 in cash. The remaining amount, $26,000, was still owed by as of December 31. In addition, Total Paint Services incurred $75,000 of expenses during the year. As of December 31, $15,000 of the expenses still needed to be paid. In addition, Total Paint Services prepaid $8,000 cash in December 2024 for expenses incurred during the next year. 1. Determine the amount of service revenue and expenses for 2024 using a cash basis accounting system. 2. Determine the amount of service revenue and expenses for 2024 using an accrual basis accounting system. . Determine the amount of service revenue and expenses for 2024 using a cash basis accounting system. Cash basis Service revenue Expenses

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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