What are the net income?

Posted on 2014-04-27 15:10:00 in Accounting by

Primo Industries collected $105,000 from customers in 2014. Of the amount collected, $25,000 was from services performed in 2013. In addition, Primo performed services worth $40,000  in 2014, which will not be collected until 2015.



Primo Industries also paid $72,000 for expenses in 2014. Of the amount paid, $30,000 was for expenses incurred on account in 2013. In addition, Primo incurred $42,000 of expenses in 2014, which will not be paid until 2015.



(a) Compute 2014 cash-basis net income.

 

Cash-basis net income

$

(b) Compute 2014 accrual-basis net income.

 

Accrual-basis net income

$

 

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