Pat's Custom Tuxedo Shop maintains its records on the cash basis. During this past year Pat's...
Pat's Custom Tuxedo Shop maintains its records on the cash basis. During this past year Pat's collected $42,500 in tailoring fees, and paid $13,400 in expenses. Depreciation expense totaled $2,600. Accounts receivable increased $1,200, supplies increased $3,000, and accrued liabilities increased $2,050. Pat's accrual basis net income was:
Multiple Choice
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$28,650.
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$24,350.
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$32,750.
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$20,250.
Homework Answers
Accrual basis net income = $42,500 - $13,400 - $2,600 + $1,200 + $3,000 - $2,050 = $28,650
1st option $28,650
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