Compute Al gross income

Assignment Help Accounting Basics
Reference no: EM132628220

Problem - Al is a medical doctor who conducts his practice as a sole proprietor. During 2019, he received cash of $280,000 for medical services. Of the amount collected, $40,000 was for services provided in 2018. At the end of 2019, Al had accounts receivable of $60,000, all for services rendered in 2019. In addition, at the end of the year, Al received $12,000 as an advance payment from a health maintenance organization (HMO) for services to be rendered in 2020. Compute Al's gross income for 2019:

a. Using the cash basis of accounting.

b. Using the accrual basis of accounting.

c. Advise Al on which method of accounting he should use.

Reference no: EM132628220

Questions Cloud

Prepare a memo to Susan Apple : Communications Trip Garage, Inc. (459 Ellis Avenue, Harrisburg, PA 17111), Prepare a memo to Susan Apple, the treasurer of Trip
Physicians and administrators in power structure : What makes the power structure in hospitals so complex? What are the roles of physicians and administrators in the power structure?
Examine hr ethical issues multinational corporations face : Examine two (2) of the major HR ethical issues multinational corporations face when operating globally. Recommend two (2) preventative actions.
How the multimedia item supported : Discuss the Differences in operating income between variable costing and absorption costing are due solely to accounting for fixed costs. Do you agree? Explain.
Compute Al gross income : Al is a medical doctor who conducts his practice as a sole proprietor. Compute Al's gross income for 2019: Using the accrual basis of accounting
Explain the methods an employee can use in filing complaint : Visit the EEOC website at eeoc and explain the methods an employee can use in filing a complaint with the EEOC. If an employer is found to have discriminated.
Create a proposal for future lease transactions to the cfo : Create a proposal for future lease transactions to the CFO. Within the proposal, discuss the use of off-the-balance sheet financing arrangements
Explain karl popper accusation : Explain Karl Popper's accusation that Plato's political philosophy is a form of totalitarianism.
What sort of deity is indra : Historically speaking, who are the Aryans? Please describe briefly their religious beliefs and practices.

Reviews

Write a Review

Accounting Basics Questions & Answers

  Raw material inventory at cost or market

At December 31, 2014, Indigo Girls Company has outstanding noncancelable purchase commitments for 57,480 gallons, at $3.30 per gallon, of raw material to be used in its manufacturing process. The company prices its raw material inventory at cost or m..

  Explain about adjusting entry, adjusted and trial balance

New Era Cleaning Service, Inc. opened for business on July 1, 2010. Explain about adjusting entry, adjusted and trial balance

  Compute all of the materials and labor variances round

costello corporation manufactures a single product. the standard cost per unit of product is shown below. direct

  Record the journal entries for this transaction

Gigler Co. bought some equipment on January 1, 2015. Record the journal entries for this transaction. Round to the nearest dollar.

  The accountant at paige company is figuring out the

the accountant at paige company is figuring out the difference in income taxes the company will pay depending on the

  How much of the sherry include in income

Sherry just received her $15,000 payment for 2011. How much of the $15,000 must Sherry include in income

  Determine the cash flows from operations

Accounts receivable (Jan 1,2019)30,000; ( dec.31,2019)33800 and Gross profit on sales 260,000. Determine the cash flows from operations for 2019

  National telephone company has been forced by competition

national telephone company has been forced by competition to put much more emphasis on planning and controlling its

  What total amount should be reported as cash

Company provided the following information at year-end: Cash on hand 500,000. What total amount should be reported as cash

  Compute the estimated gross profit

Using the percentage-of-completion method, compute the estimated gross profit that would be recognized during each year of the construction period

  Prepare a segmented income statement for Gorman Nurseries

Gorman Nurseries Inc. grows poinsettias and fruit trees in a green house/nursery operation. Prepare a segmented income statement for Gorman Nurseries

  Calculate the annual depreciation charge

Betax Limited has recently purchased new machinery with the following pricing details. Calculate the annual depreciation charge

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd