Intermediate Accounting
3rd Edition
ISBN: 9780136912644
Author: Elizabeth A. Gordon; Jana S. Raedy; Alexander J. Sannella
Publisher: Pearson Education (US)
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Textbook Question
Chapter 2, Problem 2.19BE
Cash versus Accrual Bases of Accounting. The following events occurred at VG Consulting during the most recent month.
- a. VG provided consulting services and billed clients $2,000.
- b. VG collected $1,500 for consulting services performed m the prior month.
- c. VG paid its monthly electric bill of $300.
- d. Employees who worked for VG were not paid for services performed. Next month they will be paid $850.
- e. VG collected fees of $700 for services to be performed in the following month.
For each event, determine the revenue or expense under the cash and accrual bases of accounting.
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Chapter 2 Solutions
Intermediate Accounting
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