Patrick is a part-time accounting student who does tennis coaching during the day.He receives $31 000 from clients for coaching and ball sales during the year.At year-end,one client owes him $500.He paid out $10 000 for court hire and purchase of tennis balls for resale.He owes $1000 to the court owner at year-end.Depreciation on his equipment amounts to $400.Accrual profit is:

Question

Quizplus · Accepted Answer

Revenue: $31,000
Expenses:
- Court hire and tennis balls: $10,000
- Depreciation: $400
- Owed to court owner: $1,000
- Client owes: $500
Total expenses: $11,900

Accrual profit = Revenue - Total expenses
Accrual profit = $31,000 - $11,900
Accrual profit = $20,100

Therefore, the correct answer is B) $20,100.

Patrick Is a Part-Time Accounting Student Who Does Tennis Coaching