In its first year of operations, blossom company recognized $31,700 in service revenue, $6,700 of which was on account and still outstanding at year-end. the remaining $25,000 was received in cash from customers. the company incurred operating expenses of $16,400. of these expenses, $12,220 were paid in cash; $4,180 was still owed on account at year-end. in addition, blossom prepaid $2,390 for insurance coverage that would not be used until the second year of operations.
(a) calculate the first year's net earnings under the cash basis of accounting, and the first year's net earnings under the accrual basis of accounting.
(b) which basis of accounting (cash or accrual) provides more useful information for decision-makers?
Answers: 2
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Suppose the following items were taken from the balance sheet of nike, inc. (all dollars are in millions.) 1. cash $ 2,316.7 7. inventory $ 2,245.6 2. accounts receivable 2,786.2 8. income taxes payable 80.3 3. common stock 2,841.1 9. equipment 1,783.8 4. notes payable 291.2 10. retained earnings 6,162.5 5. buildings 3,959.7 11. accounts payable 2,624.6 6. mortgage payable 1,092.3 perform each of the following. classify each of these items as an asset, liability, or stockholders’ equity, and determine the total dollar amount for each classification. (enter amounts in millions up to 1 decimal place, e. g. 45.5 million.) cash accounts receivable common stock notes payable buildings mortgage payable inventory income taxes payable equipment retained earnings accounts payable assets $ 13092 liability $ 4088.4 stockholders’ equity $ 9003.6 etextbook and media determine nike’s accounting equation by calculating the value of total assets, total liabilities, and total stockholders’ equity. (enter amounts in millions up to 1 decimal place, e. g. 45.5 million.) total assets = total liabilities + total stockholders’ equity
Answers: 3
Business, 22.06.2019 20:30, BeverlyFarmer
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Answers: 3
Business, 22.06.2019 21:40, andyboehm7411
The following items could appear on a bank reconciliation: a. outstanding checks, $670. b. deposits in transit, $1,500. c. nsf check from customer, no. 548, for $175. d. bank collection of note receivable of $800, and interest of $80. e. interest earned on bank balance, $20. f. service charge, $10. g. the business credited cash for $200. the correct amount was $2,000. h. the bank incorrectly decreased the business's by $350 for a check written by another business. classify each item as (1) an addition to the book balance, (2) a subtraction from the book balance, (3) an addition to the bank balance, or (4) a subtraction from the bank balance.
Answers: 1
In its first year of operations, blossom company recognized $31,700 in service revenue, $6,700 of wh...
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