In it's first year P7 Management earned $41,000 in revenue and received $31,000 in cash.?

In it's first year P7 Management earned $41,000 in revenue and received $31,000 in cash. The company incurred $15,000 of expenses but has not paid $5,000 of them. Prepaid rent was paid for $8,000 for rent next year. What is the net income according to cash basis and accrual basis accounting? I came up with $13,000 for Cash basis. Is that correct? And for accrual basis I came up with???

3 months ago - 1 answers