Measure of Net Income Assignment
BBA – + Stopy Page Add L Add to Retained Earnings. Question 4 Academic Consultants Inc. had the following selected transactions in August 2016: A 1 Prepaid insurance for August through December 51.000 4 Purchased software for a SRDO 5 Performed service and received cash. 200 8 Paid advertising pen 5300 11 Performed service on the account. $1,000 19 Purchased computer on account 51.600 24 Collected for the August 11 service 26 Paid account the from August 19 29 Paid salary expense, 5900 31 Adjusted for Augustincepere Aug 1) 31 Earned of 5800 that was collected in advance in My
1. Show how each transaction would be handled using the cash basis and the accrual basis. Under each column, give the amount of revenue or expense for August. Journal entries are not required. Use the following format for your answer and show your computations it of Revenue Expense) for August 2016 Can Baris 1 Revenue/Expense Amount Re s ponse) 2. Compute August income foss) before tax under each accounting method 3. Explain which measure of net income or net loss is preferable. be here to search.