Blue co., an architectural firm has a bookkeeper who maintains a cash receipts and disbursement journal. at the end of the year they want to convert the cash receipts and disbursement into accrual basis revenues and expenses.
cash receipts are as follows; cash sales - $150,000 colections on ar - 450,000 bank loan - 90,000 total 690,000 ar end of yr - 210,000 ar start of yr - 160,000 cash sales include $60,000 of prepayments for services to be provided over the next 36mths (i. e. 12 mths of services relate to 2012).

a. compute the company's accrual gross income for 2012.

b. would you recommend blue to use the cash or accrual basis method?

c. the company does not maintain an allowance for uncollectible accounts. would you recommend that such allowance be established for tax purposes?

Sara bought 12 3/4 cakes sara's friends ate 3/8 how much cake is left

Select the statement that indicates tina's company is a partnership. tina jones is a dancer specializing in latin dance styles. she always wanted to have her own dance studio where she could teach dancing to young and old alike. in 2006, she opened her first dance studio, electric diva, in madison triangle. it was a great choice as a business location because it's well-connected by highways to most places in the city. she leased the space for three years. her initial investment included a good sound system, cheerful interior design, and strong flooring. to raise capital for the business, tina turned to her brother-in-law, philip. philip made half the financial investment. he manages the accounts and social media needs of the business. he has a 30% share in trisha's business. together, they expanded the business to three dance studios in the city and plan to open franchises in other cities.

1. what is the amount of interest earned after two years on a $100 deposit paying 4 percent simple interest annually? $8.00 $4.08 $8.16 $4.00 2. what is the amount of compound interest earned after three years on a $100 deposit paying 8 percent interest annually? $24.00 $8.00 $16.64 $25.97 3. a business just took out a loan for $100,000 at 10% interest. if the business pays the loan off in three months, how much did the business pay in interest? $2,500.00 $10.00 $250.00 $10,000.00 4. what is the annual percentage yield (apy) for a deposit paying 5 percent interest with monthly compounding? 5.00% 5.12% 79.59% 0.42%