ARNOLD maintains its accounting records on the cash basis. During 2020, he collected P185,000 from his clients and paid P92,000 in expenses. Upon examination of additional evidence, the following information was obtained: 1/01/20 12/31/20 Accounts receivable Unearned revenues Accrued expenses Prepaid expenses Requirements: 1) Total revenue in 2020. 2) Total expense for 2020. 3) Correct net income for 2020. 9,000 7,000 3,000 5,000 15,000 4,000 2,000 16,000

ARNOLD maintains its accounting records on the cash basis. During 2020, he collected P185,000 from his clients and paid P92,000 in expenses. Upon examination of additional evidence, the following information was obtained: 1/01/20 12/31/20 Accounts receivable Unearned revenues Accrued expenses Prepaid expenses Requirements: 1) Total revenue in 2020. 2) Total expense for 2020. 3) Correct net income for 2020. 9,000 7,000 3,000 5,000 15,000 4,000 2,000 16,000

SWFT Comprehensive Volume 2019

42nd Edition

ISBN:9780357233306

Author:Maloney

Publisher:Maloney

Chapter16: Accounting Periods And Methods

Section: Chapter Questions

Problem 7DQ

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