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Problem 1: Patrick is a part-time accounting student who does tennis coaching during the day. He receives revenue of $30 000 from clients for coaching and ball sales during the year. At year-end, Patrick coaches one client who owes him $200 for the lesson. He paid out $10 000 for court hire and purchase of tennis balls for resale. He owes $1000 to the court owner at year-end. Depreciation on his equipment amounts to $400. Accrual profit is:
a. $19,200b. $19,000c. $18,600d. $18,800
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