Compute accrual-basis net income

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Reference no: EM132476887

point 1: Blossom Industries collected $104,000 from customers in 2020. Of the amount collected, $25,200 was for services performed in 2019. In addition, Blossom performed services worth $41,900 in 2020, which will not be collected until 2021.

point 2: Blossom Industries also paid $71,900 for expenses in 2020. Of the amount paid, $29,200 was for expenses incurred on account in 2019. In addition, Blossom incurred $41,400 of expenses in 2020, which will not be paid until 2021.

Question (a) Compute 2020 cash-basis net income.

Cash-basis net income

Question (b) Compute 2020 accrual-basis net income.

Accrual-basis net income

Reference no: EM132476887

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