Question

A) In​ January, Top Tech provided and billed clients for $50,000 of consulting services. It was paid for these services in March.

B) In​ January, Top Tech collected $52,000 from clients for services provided during the month.

C) In​ February, Top Tech provided and billed clients for $42,000 of consulting services. It collected $11,00 in the current month and the remaining amount in March.

D) In​ March, Top Tech collected $40,000 from clients for services provided during the month and billed clients for an additional $31,000 for services provided.

E) Top Tech pays employees at the end of each month for service provided. Monthly payroll was ​$11,000, $14,000​, and $19,000 in​ January, February, and​ March, respectively.

F) Top Tech pays its utility bills at the end of each month. Utility bills totaled ​$1,000, $600​, and $750 in​ January, February, and​ March, respectively.

G) Top Tech hired an independent contractor who provided $1,350 of services in February. The contractor was paid in March.

Determine Top Tech​'s net income for each month from January through March under both the cash and the accrual bases of accounting. Explain any difference in total net income under cash versus accrual accounting for the three months.

Calculate ​Top Tech's net income or net loss for each month from January through March under both the cash and the accrual bases of accounting. ​(Use parentheses or a minus sign for a net​ loss.)

Total net income over the three months is _____ (HIGHER OR LOWER) under the accrual basis due to _____ :

A) Services provided and billed in February that were partially collected in February and the remainder in March

B) Services provided in January for which clients did not pay for until March

C) Services provided in March for which clients were billed but cash was not yet collected

D) Payroll and utilities expenses that were paid in the same month the benefits were consumed

E) Payroll expenses that were paid in the month after the benefits were consumed

Answer 1

please comment for any explanation,

Thanks,