Annual statement of loss and profit

Assignment Help Financial Accounting

Reference no: EM1375432

For both cases, show what each firm would report in its annual statement of loss and profit and other comprehensive income under the:

a)Cash Basis
b)Accrual Basis

CASE 1
Through 2012 Gangnam Marketing earned revenues of $500,000 on account. Gangnam collected $510,000 from customers through the year. Expenses totaled $420,000 and the related cash payments were $400,000.

CASE 2
Bella Foods made sales of $700,000 through 2012. Out of this amount Bella collected cash for all but $30,000. Operating expenses for year amounted to $650,000. Thus, during the year, Bella paid $650,000 for the expenses, which include $30,000 advance rental.

Actually i don't know what the question need, does it require in journal/account/income statement? Will someone show me how to do it and the final answer should be what?

Reference no: EM1375432

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