In its first year of operations, Crane Company recognized $31,700 in service revenue, $7,700 of...
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Accounting
In its first year of operations, Crane Company recognized $ in service revenue, $ of which was on account and still outstanding at yearend. The remaining $ was received in cash from customers.
The company incurred operating expenses of $ Of these expenses, $ were paid in cash; $ was still owed on account at yearend. In addition, Crane prepaid $ for insurance coverage that would not be used until the second year of operations.
Calculate the first year's net earnings under the cash basis of accounting, and calculate the first year's net earnings under the accrual basis of accounting.
tableCash BasisNet Income $
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