Claymore Corporation maintains its book on a cash basis. During 2018, the company collected $825,000 in fees from its clients and paid $512,000 in expenses. You are able to determine the following information about accounts receivable, supplies, prepaid rent, salaries payable, and interest payable: In addition, 2018 depreciation expense on office equipment and furniture is $55,000.
Required:
Determine accrual basis net income for 2018.

Question

Claymore Corporation maintains its book on a cash basis. During 2018, the company collected $825,000 in fees from its clients and paid $512,000 in expenses. You are able to determine the following information about accounts receivable, supplies, prepaid rent, salaries payable, and interest payable:  In addition, 2018 depreciation expense on office equipment and furniture is $55,000.
Required:
Determine accrual basis net income for 2018.

Quizplus · Accepted Answer

The Answer of Claymore Corporation maintains its book on a cash basis. During 2018, the company collected $825,000 in fees from its clients and paid $512,000 in expenses. You are able to determine the following information about accounts receivable, supplies, prepaid rent, salaries payable, and interest payable:  In addition, 2018 depreciation expense on office equipment and furniture is $55,000.
Required:
Determine accrual basis net income for 2018.

Claymore Corporation Maintains Its Book on a Cash Basis