A Corporation Started Operations on January 1, 2001; the Reporting

question 65

Essay

A corporation started operations on January 1, 2001; the reporting period ends December 31. At the end of 2001, the company's records reflected the following correct amounts after all adjusting entries: Sales revenue, $400,000; Cost of goods sold, $232,500; Other expenses (total), $70,000; Accrued wages payable, $1,500; Accounts payable, $6,000 and Accounts receivable, $4,500.
(a) Net income, accrual basis, was $_______________.
(b) Net income, cash basis $__________________.

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Definitions:

Equally Participate

The principle or condition of having all members or parties involved in a process or activity with identical levels of involvement and opportunity.

Property Rights

Legal rights that dictate the possession, use, and transfer of property by individuals or entities.

Dishonest Behavior

Actions that involve lying, cheating, deceiving, or any form of untruthfulness or manipulation.

Cognitive Abilities

Mental capabilities involved in the process of acquiring knowledge and understanding through thought, experiences, and senses.