Concordia Industries collected $104,481 from customers in 2014. Of the amount co

Question

Concordia Industries collected $104,481 from customers in 2014. Of the amount collected, $27,766 was from revenue accrued from services performed in 2013. In addition, Concordia recognized $45,460 of revenue in 2014, which will not be collected until 2015.

Concordia Industries also paid $72,130 for expenses in 2014. Of the amount paid, $29,016 was for expenses incurred on account in 2013. In addition, Concordia incurred $38,299 of expenses in 2014, which will not be paid until 2015.

(a) Compute 2014 cash-basis net income.

(b) Compute 2014 accrual-basis net income.

Explanation / Answer

Compute cash and accrual

accounting income.

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