Jim's Gymnastics Training's Operations for the Month of October Are

question 42

Essay

Jim's Gymnastics Training's operations for the month of October are summarized as follows:
A.Provided $5,000 of training to students on account.
B.Received $4,000 cash from students for training provided in October.
C.Received $1,000 cash for training to be provided in November.
D.Received $3,000 cash from students on account for training provided in September.
E.Paid September's gym rental bill on account in the amount of $1,000.
F.Received October's rental bill of $1,500; set it aside.
Required:
Part a.Determine the net income for October using the cash basis of accounting.
Part b.Determine the net income for October using the accrual basis of accounting.

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Definitions:

Firm Performance

An assessment of how well a company achieves its business objectives, often measured through financial metrics such as revenue, profit, and return on investment.

Customer Loyalty

A customer's willingness to repeatedly return to a company to conduct some type of business due to the delightful experiences or products provided by that company.

Ethical Misconduct

Behavior that violates ethical standards, including actions that are illegal or morally unacceptable to the wider community.

Gray Areas

Situations or subjects that are not clear or are open to interpretation because of a lack of rules, regulations, or definite answers.