User Account

All Pages

Calculate the years net earnings under accrual basis

Assignment Help Cost Accounting
Reference no: EM13532893

In its first year of operations, Lazirko Company earned $28,000 in service revenue, $6,000 of which was on account and still outstanding at year-end. The remaining $22,000

was received in cash from customers.

The company incurred operating expenses of $15,800. Of these expenses, $12,000 were paid in cash; $3,800 was still owed on account at year-end. In addition, Lazirko prepaid $2,400 for insurance coverage that would not be used until the second year of operations.

Instructions

(a) 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.

(b) Which basis of accounting (cash or accrual) provides more useful information for decision makers?

Reference no: EM13532893

Questions Cloud

Brief description of the reaction conditions : In the cell, the conversion of citrate to isocitrate will definitely proceedspontaneously under the appropriate conditions. Provide a brief description of the reaction conditions that allow for this possibility.
Prepare a trial balance at august : Post the transactions to T accounts and prepare a trial balance at August 31, 2012.
State the partial pressure of carbon dioxide : A block of dry ice of dimensions 25 cm x 25 cm x 25 cm is left to sublime in a closed chamber of dimensions 4.00 m x 5.00 m x 3.00 m. The partial pressure of carbon dioxide in this chamber at 25 C will be
Explain how to reduce the activity of the catalytic enzyme : Explain the different mechanisms by which each of the inhibitors act to reduce the activity of the catalytic enzyme.
Calculate the years net earnings under accrual basis : 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.
Different organisms could have this same subset of genes : A typical prokaryotic cell has about 3,000 genes in its DNA, while a human cell has about 20,500 genes. About 1,000 of these genes are present in both types of cells. Explain how such different organisms could have this same subset of genes ?
Obtain the magnitude of centripetal acceleration of stone : A boy whirls a stone in a horizontal circle of radius 1.9 m and at height 1.8 m above level ground. obtain the magnitude of the centripetal acceleration of the stone
Define ranking them from the highest to lowest-yield product : Using proper 3D (wedge/dash) perspective drawings, draw all of the products of the reaction of methylcyclopentane with Br2 & light, ranking them from the highest to lowest-yield product.
Explain sample of 3-methylcyclohexene to a drop : Identities of the components in a mixture may be determined by a technique called spiking. Suppose you had run a gas chromatogram on your product and had then deliberately added a drop of a known sample of 3-methylcyclohexene to a drop of your pro..

Reviews

Write a Review

Cost Accounting Questions & Answers

  Evaluate the maximum profits

Evaluate the maximum profits that Greentown can earn and the customer mix and quantity by which that profit will be achieved.

  Evaluate a master budget for the three-month period

Evaluate a master budget for the three-month period ending June 30. Include the given detailed budgets:

  Prepare a statement of net assets for the employees

Prepare a Statement of Changes in Net Assets for the Employees Retirement Fund for the Year Ended June 30, 2012 and prepare a Statement of Net Assets for the Employees' Retirement Fund as of June 30, 2012.

  In 2008 the mcqueen company purchased from chris padgett

in 2008 the mcqueen company purchased from chris padgett the right to be the sole distributor in the western states of

  Explain why the copier requires on-site repairs

Chang Co. sold a copier costing $7,500 with a two-year parts warranty to a customer on August 16, 2011, for $15,000 cash. Chang uses the perpetual inventory system. On November 22, 2012, the copier requires on-site repairs that are completed the s..

  How many pool cues must be sold to break even

With a selling price of $40 each, how many pool cues must be sold to break even? What would the total revenue be at this break-even point?

  How the balance for depreciation expense for equipment

How the balance for depreciation expense for equipment is 4,772,000. Can someone please help

  Classify the following items as investment by owner

Classify the following items as investment by owner (I), owner's drawings (D), revenues (R), or expenses (E).Then indicate whether each item increases or decreases owner's equity.

  Evaluate sarahs deductible transportation expense

Evaluate Sarahs deductible transportation expense

  Q on january 1 2007 burke corporation signed a 5-year

q on january 1 2007 burke corporation signed a 5-year noncancelable lease for a machine. the terms of the lease called

  What happened to the company liquidity from 2007 to 2008

Current ratio. The following data was taken from the 2008 and 2007 financial statements of Fancy Fish Stores Inc. Calculate the current ratio for each year. What happened to the company"s liquidity from 2007 to 2008?

  What is risk adjusted rate that should be used for project

A company is evaluating a capital project on a new line of business for the firm. The firm's current cost of capital is 12%. However, another firm, whose principal focus is in the same field, is publicly traded and has a beta of 1.6.

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

Submit Assignment

Academics

Major Subjects

Majors

Get In Touch

whatsapp: +1-415-670-9521

Phone: +1-415-670-9521

Email: [email protected]

TERMS & POLICIES

HELP & SUPPORT

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd