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Question - Oriole Industries collected $104,000 from customers in 2020. Of the amount collected, $26,000 was for services performed in 2019. In addition, Oriole performed services worth $39,100 in 2020, which will not be collected until 2021.
Oriole Industries also paid $72,500 for expenses in 2020. Of the amount paid, $30,500 was for expenses incurred on account in 2019. In addition, Oriole incurred $43,200 of expenses in 2020, which will not be paid until 2021.
Required -
(a) Compute 2020 cash-basis net income.
(b) Compute 2020 accrual-basis net income.
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