E4-1B_Cash basis to accrual basis accounting

 

E4-1B Your examination of the records of a company that follows the cash basis of accounting tells you that the company’s reported cash basis earnings in 2010 are $33,640. If this firm had followed accrual basis accounting practices, it would have reported the following year-end balances.

                                                  2010                  2009

 Accounts receivable               $3,400                  $2,300

 Supplies on hand                            1,400                            1,160

 Unpaid wages owed              1,500                            2,400

 Other unpaid amounts          1,300                            1,600

 

Instructions

 

Determine the company’s net earnings on an accrual basis for 2010. Show all your calculations in an orderly fashion.

    • Posted: 6 years ago
    E4-1B_Cash basis to accrual basis accounting

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