Question

Q Company has the following information: Received $1,500 cash on July 15, 2017 in exchange for services performed for a customer on July 15, 2017 Performed services of $1,000 for a customer on July 28, 2017. Q billed the customer who will pay in August, 2017 Received $800 cash on June 15, 2017 in exchange for services to be performed for a customer in July 2017. Q performed the services on July 10, 2017 Performed services of $600 for a customer on June 29, 2017. Q billed the customer who paid the bill on July 10, 2017 Received $1,300 cash on July 25, 2017 in exchange for services to be performed for a customer in August 2017. Under the accrual basis of accounting, what is Q Company's revenue that would appear on its July 2017 income statement?

PT2) Z Company has the following information:

• Paid $500 cash on July 15, 2017 in exchange for a company to fix a broken window in its building on July 15, 2017

• Used $700 of services of a computer company to remove viruses from its computers on July 28, 2017. The company billed Q who will pay the $700 in August, 2017

• Paid $1,300 cash on June 25, 2017 to another company that will paint Q's offices in July 2017. The company painted the offices on July 10, 2017

• Hired a plumber to replace a faucet on June 29, 2017. The plumber billed Q $300. Q paid the bill on July 10, 2017

• Paid $1,500 cash to another company on July 25, 2017 in exchange for lawn services to be performed from August to October 2017. Under the accrual basis of accounting, what is Q Company's expense that would appear on its July 2017 income statement?

Answer 1

Under accrual basis of accounting transactions are recognized as soon as they occur,whether or not cash or cash equivalent is actually received or paid.The expenses and income recognized coin side with the concerned event,rather than with the time of cash payments or receipts.