Grinnell and Griffin (G&G) Company services fire protection systems at a fee of $200 per month. Clients pay in advance every quarter - and the company currently services 100 buildings. During the first quarter of the year, G&G collected all service fees on January 1; they also incurred the following expenses: $9,000 in January, $14,000 in February, and $8,000 in March. They paid half of the expense total in February and the rest in March, they did not pay expenses in January. Determine G&G's net income for each month, as well as the quarterly total, under both the cash and accrual bases. Is the quarterly total the same? If it is different, what would account for this?

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The Answer of Grinnell and Griffin (G&G) Company services fire protection systems at a fee of $200 per month. Clients pay in advance every quarter - and the company currently services 100 buildings. During the first quarter of the year, G&G collected all service fees on January 1; they also incurred the following expenses: $9,000 in January, $14,000 in February, and $8,000 in March. They paid half of the expense total in February and the rest in March, they did not pay expenses in January. Determine G&G's net income for each month, as well as the quarterly total, under both the cash and accrual bases. Is the quarterly total the same? If it is different, what would account for this?

Grinnell and Griffin (G&G) Company Services Fire Protection Systems at a Fee