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In its first year of operations, 2020, Blue Spruce Corp. invoiced $197,000 in service revenue....

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Accounting

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In its first year of operations, 2020, Blue Spruce Corp. invoiced $197,000 in service revenue. Of that amount, $25,000 was still owing from customers at the end of year. In 2020, Blue Spruce incurred various operating expenses totalling $88,000, of which $78,000 was paid in cash. Salaries and wages paid to employees totalled $64,000 and $2,700 was still owing at the end of the year. In addition, Blue Spruce prepaid $4,800 for insurance coverage that covered the last half of 2020 and the first half of 2021. Blue Spruce estimates it will owe $8,000 in income tax when it files its corporate income tax return after its 2020 year end. X Your answer is incorrect. Calculate the net income for 2020 under the accrual basis of accounting, Net income $ 34600 e Textbook and Media X Your answer is incorrect. Calculate the net income for 2020 under the cash basis of accounting * Your answer is incorrect. Calculate the net income for 2020 under the cash basis of accounting. Net income $ 27900 e Textbook and Media Your answer is correct. Which basis of accounting (accrual or cash) gives the most useful information for decision makers? The accrual basis of accounting provides more useful information for decision makers. e Textbook and Media

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