Listed below are several transactions that took place during the first two years of operations for the law firm of Perez Associates.
Year Year
Amounts billed to clients for services rendered $ $
Cash collected from clients
Cash disbursements:
Salaries paid to employees for services rendered during the year
Utilities
Purchase of insurance policy
In addition, you learn that the firm incurred utility costs of $ in year that there were no liabilities at the end of year no anticipated bad debts on receivables, and that the insurance policy covers a threeyear period.Complete this question by entering your answers in the tabs below.
Req and Req
Prepare an income statement for each year according to the accrual accounting model.
Perez Associates
Income Statements
Year Year
Revenues
Expenses:
Salaries
Utilities
Insurance
Net income loss
