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 agoRelated Solutions
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 $400,000 for services it
provided; in May, it billed customers $369,000 for services it
provided.
In May, the company received $282,000 from its April customers
and $254,000 from its May customers.
Which of the following amounts will appear on X Company's May
Income Statement and Statement of Cash Flows?
- Income Statement, $536,000; Statement of Cash Flows,
$769,000
- both statements, $254,000
- Income...
X Company is a service company and prepares monthly financial statements.
X Company is a service company and prepares monthly financial
statements. In April, it billed customers $405,000 for services it
provided; in May, it billed customers $369,000 for services it
provided.In May, the company received $281,000 from its April customers
and $273,000 from its May customers.Which of the following amounts will appear on X Company's May
Income Statement and Statement of Cash Flows?a. both statements, $369,000b. Income Statement, $369,000; Statement of Cash Flows,
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X Company was created on September 1 and prepares monthly financial statements. During September, X Company...
X Company was created on September 1 and prepares monthly
financial statements. During September, X Company issued stock to
investors for $98,000, borrowed $83,000 from a bank, bought
merchandise that it planned to sell, paying $3,416 and promising to
pay $5,166 in October, bought equipment, paying $5,100 and
promising to pay $4,800 in December, paid $3,603 that it had
promised to pay to suppliers for previous purchases on account,
sold merchandise, receiving cash of $16,879 and promises to pay
from...
web> X Company is a merchandiser and prepares monthly financial statements. The following is its balance...
web> X Company is a merchandiser and prepares monthly
financial statements. The following is its balance sheet at the
beginning of July:
Balance
Sheet
July
1
Assets
Equities
Cash
$51,224
Accounts Payable
$58,945
Accounts Receivable
32,564
Notes Payable
34,137
Inventory
79,249
Prepaid Rent
5,512
Paid-In Capital
222,746
Equipment
220,502
Retained Earnings
73,223
Total Assets
$389,051
Total Equities
$389,051
The following summary transactions occurred during July:
Sold stock to investors for $44,000.
Borrowed $28,000 from a bank and paid off a...
web> X Company is a merchandiser and prepares monthly financial statements. The following is its balance...
web> X Company is a merchandiser and prepares monthly
financial statements. The following is its balance sheet at the
beginning of July: Balance Sheet July 1 Assets Equities Cash
$50,676 Accounts Payable $65,758 Accounts Receivable 33,728 Notes
Payable 31,613 Inventory 80,609 Prepaid Rent 6,118 Paid-In Capital
252,133 Equipment 241,894 Retained Earnings 63,521 Total Assets
$413,025 Total Equities $413,025 The following summary transactions
occurred during July: Sold stock to investors for $45,000. Borrowed
$21,000 from a bank and paid off a...
X Company prepares monthly financial statements. In January, it purchased inventory on account. The accountant recorded...
X Company prepares monthly financial statements. In January, it
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Retained Earnings. As a result, which of the following is true
regarding the January financial statements?
Retained Earnings was understated.
Expenses were understated.
Accounts Payable was understated.
Inventories were understated.
Accounts Receivable was overstated.
Revenue was understated.
X Company prepares monthly financial statements. The following is the company's July 1 Balance Sheet:  
X Company prepares monthly financial statements. The following
is the company's July 1 Balance Sheet:
Balance
Sheet
July
1
Assets
Equities
Cash
$37,735
Accounts Payable
$5,304
Accounts Receivable
5,080
Notes Payable
20,534
Inventory
14,690
Prepayments
3,320
Paid-In Capital
67,018
Equipment
65,324
Retained Earnings
33,293
Total Assets
$126,149
Total Equities
$126,149
The following were the company's July transactions:
borrowed $30,000 from a bank
bought equipment costing $9,400, paying the manufacturer $5,200
in cash and signing a note for $4,200
purchased a...
X Company prepares monthly financial statements. The following is the company's July 1 Balance Sheet:  
X Company prepares monthly financial statements. The following
is the company's July 1 Balance Sheet:
Balance
Sheet
July
1
Assets
Equities
Cash
$39,975
Accounts Payable
$5,261
Accounts Receivable
5,071
Notes Payable
23,084
Inventory
12,389
Prepayments
3,763
Paid-In Capital
70,775
Equipment
69,091
Retained Earnings
31,169
Total Assets
$130,289
Total Equities
$130,289
The following were the company's July transactions:
borrowed $29,000 from a bank
bought equipment costing $9,200, paying the manufacturer $5,000
in cash and signing a note for $4,200
purchased a...
X Company prepares monthly financial statements. On September 6, its accountant made an entry that resulted...
X Company prepares monthly financial statements. On September 6,
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following transactions is consistent with this entry? X Company did
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borrowed $54,000 from a bank and signed a note.
received $54,000 from a customer who bought merchandise with
cash.
received $54,000 from a customer who had previously bought
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paid $54,000 to...
X Company prepares monthly financial statements. The following is the company's July 1 Balance Sheet: Balance...
X Company prepares monthly financial statements. The following
is the company's July 1 Balance Sheet:
Balance Sheet
July 1
Assets Equities
Cash $35,434 Accounts Payable $5,395
Accounts Receivable 5,618 Notes Payable 22,519
Inventory 14,313
Prepayments 3,011 Paid-In Capital 62,008
Equipment 63,027 Retained Earnings 31,481
Total Assets $121,403 Total Equities $121,403
The following were the company's July transactions:
borrowed $26,000 from a bank
bought equipment costing $10,300, paying the manufacturer
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