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Question - Blossom Industries collected $128,100 from customers in 2022. Of the amount collected, $30,500 was for services performed in 2021. In addition, Blossom performed services worth $48,800 in 2022, which will not be collected until 2023.
Blossom Industries also paid $87,840 for expenses in 2022. Of the amount paid, $36,600 was for expenses incurred on account in 2021. In addition, Blossom incurred $51,240 of expenses in 2022, which will not be paid until 2023.
Required -
(a) Compute 2022 cash-basis net income.
(b) Compute 2022 accrual-basis net income.
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