Mike Inc. had the following transactions during August: Aug 1 Purchased insurance for September through December $2500 Aug 4 Purchased software for cash $650 Aug 5 Performed Services and received cash $7000 Aug 8 Paid advertising expense $600 Aug 11 Performed services on account $3700 Aug 19 Purchased computer on account $2800 What is the cash basis and accrual basis income for August?

Mike Inc. had the following transactions during August: Aug 1 Purchased insurance for September through December $2500 Aug 4 Purchased software for cash $650 Aug 5 Performed Services and received cash $7000 Aug 8 Paid advertising expense $600 Aug 11 Performed services on account $3700 Aug 19 Purchased computer on account $2800 What is the cash basis and accrual basis income for August?

Principles of Accounting Volume 1

19th Edition

ISBN:9781947172685

Author:OpenStax

Publisher:OpenStax

Chapter4: The Adjustment Process

Section: Chapter Questions

Problem 2PA: To demonstrate the difference between cash account activity and accrual basis profits (net income),...

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