Compute its income by accrual accounting principles

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Question - F Co., has cash receipts and disbursements records that are summarized as follows for 2019, its first year of operations: Management wants you to compute its income by accrual accounting principles. You have identified the following items that may impact your computation.

1 Depreciation of plant assets for 2019 computed by straight-line method is 10,500. Depreciation expense - plant assets 10,500 Accumulated depreciation 10,500

2. Prepaid insurance of 1,800, two-thirds of which relates to 2020 was included in the 2019 cash disbursement figure.

Reference no: EM133176044

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