Question 1
During 2010, Stacket Enterprises earned...... $55,000 (a)
for services provided and incurred expense of $15,500 (b)
At the end of the year, $35,750 ( c) of the revenue
had been received in cash
At the end of the year, $11,600 (d) of the expense had been paid
During the same year, the firm received cash of......... $3,500 (e)
for services to be performed the following year.
They also paid rent for the first 6 months of 2011 for $4,500 (f)
REQUIRED: Determine 2010 net income under (a) cash basis and (b) accrual basis