Homework SourseDuring teh month of August 2014 ADC Co a CPA service had the
During teh month of August 2014, ADC Co, a CPA service, had the following transactions:
Billed $48,000 in revenues on credit
Received $2,000 from customers\' accounts receivable
Incurred expenses of $6,000 but only paid $5,750 cash for these expenses
Prepaid $1,110 for computer services to be used next month
Incurred wage expense of $100 but to be paid next month
Used office building for the month; depreciation expenseof $4,000 not yet recorded
What was the company\'s accrual basis net income for the month and why?
Solution
Solution:
| Income Statement - ADC Co - August 2014 | |
| Particulars | Amount |
| Revenue | $48,000.00 |
| Expenses Incurred | $6,000.00 |
| Wage Expense | $100.00 |
| Depreciation on office building | $4,000.00 |
| Accrual basis net income | $37,900.00 |
