Accounting 101 help 2 questions?

Question

Received statement from J. Bybee showing gross receipts from concessions of $9,000 and the balance due to The Three-Peat of $1,350 for March. Bybee paid half the balance due and will remit the remainder on April 5.
How do i put it in journal entries format???

Question2. In its first year of operations, Bere Company earned $27,046 in service revenue, $6,667 of which was on account and still outstanding at year-end. The remaining $20,379 was received in cash from customers.

The company incurred operating expenses of $14,655. Of these expenses $12,264 were paid in cash; $2,391 was still owed on account at year-end. In addition, Bere prepaid $3,645 for insurance coverage that would not be used until the second year of operations.

Calculate the first year's net earnings under the cash basis of accounting.
Cash basis net earning is??

Answer 1

1. Received statement from J. Bybee showing gross receipts from concessions of $9,000 and the balance due to The Three-Peat of $1,350 for March. Bybee paid half the balance due and will remit the remainder on April 5.
Bal. due to Three-Peat is $1,350 of which half was paid.
Dr A/cs receivable 675
Dr Cash 675
Cr Concession revenue 1,350

2. Under the cash basis, you ignore all accruals and prepayments. You can't cherry pick and recognise some and ignore some.
Cash received 20,379
Cash paid:
Op'g expenses (12,264)
Insurance (3,645)
Cash basis Net earnings $4,470

Answer 2

1,) Cash debit $4500.00
Accounts Receivable debit $4500.00
Sales/Revenue credit $9000.00
Materials Expense debit $1350.00
Accounts Payable credit $1350.00
(assuming Three-Peat is a balance due-not sure of expense type so lets say Materials - your question makes it sound like they came on same statement - odd . . . .)

2.) Under Cash Basis only revenue received and expenses actually paid are accounted for - however those items must still meet criteria as a current period cost - so you cannot deduct the portion that is pre-paid item.
Sales Revenue: 20,379.00
Less Op Exp: -12,264.00
Net Earnings: $8,115.00 - assuming the prepaid item was not part of the 12,264 - if it is then net earnings is $11,760.00.

Answer 3

most small companies use cash basis...

at any rate, i wont tell you the entries cuz you wont learn...just make T accounts for all the accounts.
Remember, revenues are credits (right side), receivable are debits (left side).

Answer 4

No one uses cash-basis accounting. The question is silly!