Carl's Catering Just Completed Its First Year of Operations

question 103

Essay

Carl's Catering just completed its first year of operations.During the year,the following events took place.
-Customer payments in the amount of $64,000 were received at the time the catering services were performed.
-Additional catering services totaling $35,000 were performed on account for customers; payments amounting to $6,000 were received from those customers.
-On the last day of the year,a local company paid $3,000 for catering services to be performed in 30 days.
-Employee wages totaled $25,000 and were paid in cash.
-The costs of food,beverages,and supplies used when catering services were performed amounted to $26,000 and were paid for in cash.(Note: Categorize these costs as "cost of goods sold.")
-Unpaid bills for delivery costs during the year amounted to $1,000 and were on hand at the end of the year.
-On the last day of the year,the company paid $12,000 in advance for rent on office space.
Required:
Part a.Determine the net income for Carl's Catering on a cash basis.
Part b.Determine the net income for Carl's Catering on an accrual basis.

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Definitions:

Late Adulthood

A stage in human development that typically begins around the age of 65 and is characterized by retirement, aging, and change in social roles.

Memory

The mental capacity to store, retain, and retrieve information, playing a crucial role in learning and cognition.

Alzheimer's Disease

A progressive neurological disorder that causes brain cells to waste away and die, leading to memory loss and cognitive decline.

Aging

Aging is the process of becoming older, encompassing a variety of biological, physical, psychological, and social changes over time.