Question

In: Accounting

X Company is a service company and prepares monthly financial statements. In April, it billed customers...

X Company is a service company and prepares monthly financial statements. In April, it billed customers $418,000 for services it provided; in May, it billed customers $353,000 for services it provided.

In May, the company received $282,000 from its April customers and $241,000 from its May customers.

Which of the following amounts will appear on X Company's May Income Statement and Statement of Cash Flows?

both statements, $353,000
Income Statement, $353,000; Statement of Cash Flows, $523,000
Income Statement, $523,000; Statement of Cash Flows, $771,000
both statements, $241,000
Income Statement, $771,000; Statement of Cash Flows, $523,000
Income Statement, $523,000; Statement of Cash Flows, $353,000

Solutions

Expert Solution

Income Statement will be prepared on accruel basis.

Cash Flows are prepared on Receipt Basis.

Please comment for any queries... Thank you!

ekkarill92 answered 2 years ago
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