cash and accrual basis 460454

For each transaction, determine the amount of revenue or expense, if any, that is recorded under accrual-basis accounting and under cash-basis accounting. (Leave no cells blank – be certain to enter “0” wherever required. Omit the “$” sign in your response.)

Accrual-Basis Cash-Basis

Transaction Revenue Expense Revenue Expense

1. Receive cash from customers at the time of service, $2,700. $ $ $ $

2. Issue common stock for cash, $5,000.

3. Receive cash from customers who were previously billed, $1,200.

4. Record depreciation of equipment, $500.

5. Pay workers’ salaries for the current month, $600.

6. Pay for rent one year in advance, $2,400.

7. Repay a long-term note to the bank, $2,000.

8. Pay workers’ salaries for the previous month, $750.

9. Pay dividends to stockholders, $400.

10. Purchase office supplies for cash, $440.