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At the end of 2017, the accounting records of Trite Company showed the following data:
| 2017 | 2018 | 2019 |
Service revenue: | | | |
Cash | $35,000 | $55,000 | |
On credit | 28,000 | 17,000 | |
2019 revenue collected in advance of 2019 (not Included in the $55,000) | | 5,000 | |
Additional cash collections for: | | | |
2017 service revenue | 8,000 | 4,000 | |
2018 service revenue | | 6,000 | $2,000 |
| | | |
Expenses: | | | |
Paid in cash | 22,000 | 32,000 | |
On credit | 3,000 | 9,000 | |
2019 expenses paid in advance of 2019 (not Included in the $32,000) | | 5,000 | |
Additional cash payments for: | | | |
2017 expenses | 2,000 | 1,000 | |
2018 expenses | | 4,000 | 4,000 |
| | | |
| | | |
Complete the following tabulation:
| 2017 | 2018 |
Service revenue that would be reported: | | |
Accrual basis | $ | $ |
Cash basis | $ | $ |
| | |
Expenses that would be reported: | | |
Accrual basis | $ | $ |
Cash basis | $ | $ |
Please show calculations here:
Answer & Explanation
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