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Question - In its first year of operations, Ramirez Company recognized $28,000 in service revenue, $6,000 of which was on account and still outstanding at year-end. The remaining $22,000 was received in cash from customers.
The company incurred operating expenses of $15,800. Of these expenses, $12,000 were paid in cash; $3,800 was still owed on account at year-end. In addition, Ramirez prepaid $2,400 for insurance coverage that would not be used until the second year of operations.
Calculate the first year's net earnings under the cash basis of accounting, and accrual basis of accounting.
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tyrene products manufactures recreational equipment. one of the companys products a skateboard sells for 30. the
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Robin Shalit, D.D.S., opened a dental practice on January 1, 2015. Prepare the adjusting entries on January 31
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