The Following Events Took Place at Forrest's Tree Service During

question 99

Essay

The following events took place at Forrest's Tree Service during the first quarter of the year. Determine Forrest's net income for each month, including a quarterly total, under both the cash and accrual bases of accounting.
a. Performed tree services in January - billed clients for $5,000.
b. Monthly saw sharpening - January, February, March - paid $500 per month.
c. Collected $2,500 from January clients on February 10th.
d. Performed tree services in February - billed clients for $8,000.
e. Employees are paid every other month; salary expense is $5,000 per month - paid on February 28.
f. Performed tree services in March - billed clients for $10,000 - also collected remaining January balance and $5,000 due from February.

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Definitions:

Guilt

A cognitive or emotional experience that occurs when a person believes or realizes they have compromised their own standards of conduct or violated a moral standard.

Remorse

A deep feeling of regret or guilt for a wrong committed.

Depressed People

Individuals experiencing a mental health disorder characterized by persistently depressed mood or loss of interest in activities, causing significant impairment in daily life.

Sad Mood

A temporary emotional state characterized by feelings of unhappiness, disappointment, or despondency.