29 Jun Question E4-1B Your examination o
Question
E4-1B Your examination of the records of a company that follows the cash basis of accounting tells you that the company’s reported cash basis earnings in 2010 are $33,640. If this firm had followed accrual basis accounting practices, it would have reported the following year-end balances.
2010 2009
Accounts receivable $3,400 $2,300
Supplies on hand 1,400 1,160
Unpaid wages owed 1,500 2,400
Other unpaid amounts 1,300 1,600
Instructions
Determine the company’s net earnings on an accrual basis for 2010. Show all your calculations in an orderly fash
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