Hello, I need help with the following question(s): rConnect xC Chegg Study Guide

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Hello, I need help with the following question(s):

rConnect xC Chegg Study Guided Sol X ? ? ??Secure l https://newconnect.mheducation.com/flow/connect.html Ch 3 Exercises Help Save & Exit Submit Saved Check my work QS 3-5 Prepaid (deferred) expenses adjustments LO P1 In its first year of operations, Roma Company reports the following: 4.37 pcinis Earned revenues of $45,000 (S37000 cash recelved from customers Incurred expenses of $25,500 1$20,250 cash paid toward them). Prepaid S6,750 cash for costs that will not be expensed until next year eBook Hint Piint Compute the company's first-year net income under both the cash basis andthe accrual basis of accounting. References Prepaid Insurance. The Prepaid Insurance account has a $4,700 debit balance to start the year. A review of insurance policies and payments shows that $900 of unexpired insurance remains at year-end. Prepaid Insurance Step 1: Determine what the current account balance equals Step 2: Determine what the current account balance should equal Step 3: Record the December 31, adjusting entry to get from step 1 to step 2 Mc Graw Pre 8 of 15 Ne > 9:14 PM O Type here to search 6/20/2018

Explanation / Answer

Computation of Net Income for R Co. under Cost and Accrual Basis Cash Basis Accrual Basis Revenues $37,000 $45,000 Expenses -$27,000 -$25,500 Net Income $10,000 $19,500

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