What amount should be reported as capital

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1. Frick Co. reported sales revenue of $4,600,000 in its income statement for the year ended December 31, 2015. Additional information is as follows: 12/31/14 12/31/15 Accounts receivable $1,000,000 $1,300,000 Allowance for uncollectible accounts (100,000) (60,000) Frick wrote off uncollectible accounts totaling $100,000 during 2015. Under the cash basis of accounting, Frick would have reported 2015 sales of?

2. Frick Corp. maintains its accounting records on the cash basis but restates its financial statements to the accrual method of accounting. Frick had$60,000 in cash-basis pretax income for 2015. The following information pertains to Frick's operations for the years ended December 31, 2015and 2014: 2015 2014 Accounts receivable $20,000 $40,000 Accounts payable 15,000 30,000 Under the accrual method, what amount of income before taxes should Frick report in its December 31, 2015 income statement?

3. On February 1, 2014, Frick began a service proprietorship with an initial cash investment of $2,000. The proprietorship provided $5,000 of services in February. The proprietorship incurred expenses of $3,000 in February, which wre paid in April. During March, Frick drew $1,000 against the capital account. In the proprietorship's financial statements for the two months ended March 31, 2014 prepared under the accrual basis method of accounting, what amount should be reported as capital?

Reference no: EM131221042

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