lune 30 550 otal Expenses Recorded 3300 3300 Seashore Home provides house-sittin
ID: 2555588 • Letter: L
Question
lune 30 550 otal Expenses Recorded 3300 3300 Seashore Home provides house-sitting for people while they are away on vacation. Some of its customers pay immediately after the job is finished. Some customers ask that the business send them a bill. On December 31, Seashore Home has collected $700 from cash-paying customers. Seashore Home's remaining customers owe the business $1,400 Cash Basis Accrual Basis 700 700 Cash received 700 2100 Revenue Recorded December 31 700 Total Revenue Recorded Momentous Occasions received $3,200 for services to be performed for the next 8 months on March 31. Accrual Basis Cash Basis 3200 31 Cash received Revenue Recorded 400Explanation / Answer
Ans)
a) cash basis
Cash received= 700
Revenue revorded= 700
Total revenue recorded =700
Accrual basis
Cash received= 700
Revenue recorded= 700+ 1400 = 2100
Total revenue recorded = 2100
B) cash basis
Total revenue recorded = 3200
Accrual basis
Cash received= 3200
Revenue revorded = 3200 /8 = 400
Total revenue recorded= 400
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