Revenue and Expenses

Get a 10% discount on an order above
Use the following coupon code :
Get10

Order a Similar Paper Order a Different Paper

Week Two Exercise Assignment
Revenue and Expenses
Revenue and Expenses. Dave Morris began a law practice several years ago, shortly after graduating from law school. During 19X1, he was approached by Delores Silva, who had recently suffered a back injury in an automobile accident. Morris accepted Silva as a client, and in 19X2 proceeded with a lawsuit against Maddox Motors. The suit alleged that Maddox had knowingly sold Silva an automobile with defective brakes. Late in 19X2, the courts awarded Silva $240,000 in damages. Morris was entitled to 40% of this settlement for his fees.

Document Preview:

Week Two Exercise Assignment
Revenue and Expenses
Revenue and Expenses. Dave Morris began a law practice several years ago, shortly after graduating from law school. During 19X1, he was approached by Delores Silva, who had recently suffered a back injury in an automobile accident. Morris accepted Silva as a client, and in 19X2 proceeded with a lawsuit against Maddox Motors. The suit alleged that Maddox had knowingly sold Silva an automobile with defective brakes. Late in 19X2, the courts awarded Silva $240,000 in damages. Morris was entitled to 40% of this settlement for his fees. In 19X3, Maddox Motors paid Silva and Morris their respective shares of the judgment. Morris incurred secretarial and photocopy charges in 19X2 of $12,000— all related to the Silva case. Of this amount, $8,000 was paid in 19X2 and the balance was paid in 19X3. Assuming that Morris uses the accrual basis of accounting, in what year(s) should the revenue and expense amounts be recognized? Why?
Accrual and modified cash basis. The following information pertains to Beta Company for October:
Services rendered during October to customers on account $14,380 Cash receipts from Owner investment 7,000 Customers on account 5,650 Cash customers for services rendered in October 6,800 Cash payments to Creditors for expenses incurred during October 4,400 Creditors for expenses incurred prior to October 2,100 Monroe Equipment for purchase of new machinery on October 1 8,400 Expenses incurred during October, to be paid in future months 3,725
The machinery is expected to have a service life of five years.
Instructions
Calculate Beta’s net income for October, using the following methods:
Accrual basis of accounting.
Modified cash basis of accounting.
Accounting for prepaid expenses and unearned revenues. Hawaii-Blue began business on January 1 of the current year and offers deep sea fishing trips to tourists. Tourists pay $125 in…

Looking for a similar assignment? Get help from our qualified experts!

Our specialized Assignment Writers can help you with your custom paper today. 100% written from scratch

Order a Similar Paper Order a Different Paper

Save your time - order a paper!

Get your paper written from scratch within the tight deadline. Our service is a reliable solution to all your troubles. Place an order on any task and we will take care of it. You won’t have to worry about the quality and deadlines

Order Paper Now