Concordia Industries Ltd. collected Pounds 112,000 from customers in 2017. Of the amount collected, Pounds 30,000 was from revenue accrued from services performed in 2016. In addition, Concordia recorded Pounds 44,000 in revenue in 2017, which will not be collected until 2018. Concordia Industries also paid Pounds 72,000 for expenses in 2017. Of the amount paid, Pounds 27,000 was for expenses incurred on account in 2016. In addition, Concordia incurred Pounds 37,000 in expenses in 2017, which will not be paid until 2018. (a) Compute 2017 cash-basis net income. (b) Compute 2017 accrual-basis net income.
Concordia Industries Ltd. collected Pounds 112,000 from customers in 2017. Of the amount collected, Pounds 30,000 was from revenue accrued from services performed in 2016. In addition, Concordia recorded Pounds 44,000 in revenue in 2017, which will not be collected until 2018. Concordia Industries also paid Pounds 72,000 for expenses in 2017. Of the amount paid, Pounds 27,000 was for expenses incurred on account in 2016. In addition, Concordia incurred Pounds 37,000 in expenses in 2017, which will not be paid until 2018. (a) Compute 2017 cash-basis net income. (b) Compute 2017 accrual-basis net income.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:Concordia Industries Ltd. collected Pounds 112,000 from customers in 2017. Of the amount
collected, Pounds 30,000 was from revenue accrued from services performed in 2016. In
addition, Concordia recorded Pounds 44,000 in revenue in 2017, which will not be collected
until 2018.
Concordia Industries also paid Pounds 72,000 for expenses in 2017. Of the amount paid,
Pounds 27,000 was for expenses incurred on account in 2016. In addition, Concordia
incurred Pounds 37,000 in expenses in 2017, which will not be paid until 2018.
(a) Compute 2017 cash-basis net income.
(b) Compute 2017 accrual-basis net income.
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