Problem: Analyzing Transactions to Compute Net Income
Wasley Corp., a start-up company, provided services that were acceptable to its customers and billed those customers for $350,000 in 2012. However, Wasley collected only $280,000 cash in 2012, and the remaining $70,000 was collected in 2013. Wasley employees earned $225,000 in 2012 wages that were not paid until the ?rst week of 2013. How much net income does Wasley report for 2012? For 2013 (assuming no additional transactions)? Analyzing Transactions Using the Financial Statement Effects Template.