Selected Transaction Data of a Business for September Are Summarized

question 185

Essay

Selected transaction data of a business for September are summarized below. Determine the following amounts for September: (a) total revenue, (b) total expenses, (c) net income. $\begin{array}{lr}\text { Service sales charged to customers on account during September}& \$ 33,000 \\ \text { Cash received from cash customers for services performed in September}& 28,000\\ \text { Cash received from customers on account during September:}\\\text { Services performed and charged to customers prior to September } & 13,000 \\\text { Services performed and charged to customers during September } & 18,000 \\\text { Expenses incurred prior to September and paid during September } & 6,500 \\\text { Expenses incurred and paid in September } & 36,250\\\text { Expenses incurred in September but not paid in September}&5,000\\\text { Expenses for supplies used and insurance (not included above)}\\\text { applicable to September}&2,000\end{array}$

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Definitions:

Classifying

The process of organizing data, objects, or concepts into categories based on shared qualities or characteristics.

Noncurrent Deferred Tax Liability

A tax obligation payable in future periods as a result of temporary differences between the tax base of an asset or liability and its carrying amount on the balance sheet.

Accelerated Depreciation

A method of depreciation that allows a larger portion of an asset’s cost to be written off in the early years of useful life, decreasing taxable income.

Straight-Line Method

A method of calculating depreciation of an asset that allocates an equal amount of depreciation each year over the asset's useful life.