Question

Effect of Accounting Method (LO. 6) Bonnie opens a computer sales and repair service during the current year. Her records for the year show: Cash Received Liability Incurred Sales Made Cash Paid Repair revenue $20,170 $ 28,810 27,800 Computer sales 18,390 Computer purchases $55,630 $26,950 Employee wages 11,630 9,770 Supplies, utilities, etc. 8,680 5,930 Bonnie has computers on hand on December 31 that cost $40,490 and have a retail selling price of $63,930. Compute taxable income under the various methods.

I just need help filling out these last table values, all the answers I have in the table so far are correct.

Answer 1

Computation Of Taxable Income

	Hybrid	Accrual
Gross Income:
Repair Revenues	28810	20170
Computer Sales	27800	18390
Total Revenue	56610	38560
Deductions:
Cost of goods Sold Beginning Inventory 0 Purchases    55630 Goods available 55630 Ending Inventory 40490	(15140)	(15140)
Employee Wages	(11630)	(9770)
Supplies, Utilities, etc	(8680)	(5930)
Total Deductions	35450	30840
Taxable income	21160	7720