The Following Data Are Taken from the Cash-Basis Accounting Records

question 86

Essay

The following data are taken from the cash-basis accounting records of Myerson Company for the year ended December 31, 2012: Selected Data as of December 31,2012
$\begin{array}{lr}\text { Customers billed in 2012 for services provided } & \$ 400,000 \\\text { Cash collections in 2012 for accounts billed in 2011 } & 20,000 \\\text { Cash collections in 2012 for accounts billed in 2012 } & 300,000 \\\text { Cash paid for supplies purchased in 2012 } & 12,000 \\\text { Supplies remaining at the end of 2012 } & 2,000 \\\text { Cash paid for salaries in 2012 } & 10,000 \\\text { Cash paid for annual rent on March 1, 2012 } & 18,000\end{array}$ Calculate the amount of revenues and expenses for 2012 under cash-basis accounting.

---

Definitions:

Horizontal Analysis

A method of financial examination that looks at past financial data across multiple reporting periods to detect patterns and trends in growth.

Income Statements

A financial statement that shows a company's revenues, expenses, and profits or losses over a particular period.

Trial Balance

An accounting report that lists all the balances of each ledger account to ensure that debits equal credits, used as a tool for checking the accuracy of bookkeeping entries.

T Accounts

A graphical representation used in accounting to show the effects of transactions on individual accounts.