Determine income on an accrual basis

Assignment Help Accounting Basics

Reference no: EM131001970

The following data relate to Jones Company for the year ended December 31, 2007:

Sales on credit	$80,000
Cost of inventory sold on credit	65,000
Collections from customers	60,000
Purchase of inventory on credit	50,000
Payment for purchases	55,000
Cash collections for common stock	30,000
Dividends paid	10,000
Payment to salesclerk	10,000

Required:

a. Determine income on an accrual basis.

b. Determine income on a cash basis.

Reference no: EM131001970

Questions Cloud

Scales or proportional securities regulation : The report indicates that a scales or proportional securities regulation for smaller public companies assures the full benefits and protection of federal securities regulation for investors in large companies that make up 94% of the total public U..

Selected sections of the sarbanes-oxley act : Establishment of Board-There is established the Public Company Accounting Oversight Board, to oversee the audit of public companies that are subject to the securities laws,

Accounting procedures are in the form of ritual : Assume that accounting procedures are in the form of ritual. Does this imply that the accountant's product does not serve a useful function? Discuss.

Find the single premium : If death occurs in the second year, insured will receive at time 2 only a return of the single premium paid without interest. Suppose q70 = 0.36, q71 = 0.40, and the interest rate is 100%. Find (a) the single premium, (b) 1V.

Determine income on an accrual basis : a. Determine income on an accrual basis. b. Determine income on a cash basis.

Development of generally accepted accounting principles : Certain underlying considerations have had an important impact on the development of generally accepted accounting principles. Following is a list of these underlying considerations, as well as a list of statements describing them.

Is j greater than less than or equal to i why : All premiums were calculated at a constant interest rate of i. B earned a constant rate of j on his investments. Is j greater than, less than or equal to i? Why?

Problem regarding the breach of contract : Identify the accounting principle(s) applicable to each of the following situations:

Explain how reserves will be affecte for whole life policies : Suppose that a mortality table used to calculate reserves is altered. Explain how the reserves will be affected, for whole life policies with a constant death benefit and level premiums.

User Account

All Pages