Calculate the accrual net income


Accrual accounting

Response to the following problem:

Cash flows during the first year of operations for the Harman-Kardon Consulting Company were as follows: Cash collected from customers, $340,000; Cash paid for rent, $40,000; Cash paid to employees for services rendered during the year, $120,000; Cash paid for utilities, $50,000.

In addition, you determine that customers owed the company $60,000 at the end of the year and no bad debts were anticipated. Also, the company owed the gas and electric company $2,000 at year-end, and the rent payment was for a two-year period. Calculate accrual net income for the year.

 

Request for Solution File

Ask an Expert for Answer!!
Financial Accounting: Calculate the accrual net income
Reference No:- TGS02090519

Expected delivery within 24 Hours