In its first year of operations, Harden Co. earned $39,000 in revenues and received $33,000 cash from
these customers. The company incurred expenses of $22,500 but had not paid $2,250 of them at yearend.
Harden also prepaid $3,750 cash for expenses that would be incurred the next year. Calculate
the first year’s net income under both the cash basis and the accrual basis of accounting. i think i under stand the cash basis but not shure on the accrual one? help please
2007-07-14
13:52:19
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2 answers
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