In the course of your examination of the book and records of Gardner Company for the year ending…

In the course of your examination of the book and records of Gardner Company for the year ending December 31, 2011, you find the following data. Salaries earned by employees ……………..$45,000Salaries paid to employees ……………… 42,000Total sales revenue ……………….. 800,000Cash collected from sales ……………… 780,000Utilities expense incurred ……………….. 4,600Utilities bills paid ……………….. 4,300Cost of Goods sold ……………….. 475,000Cash paid on inventory purchases in 2011 …………467,500Inventory at December 31, 2011…………………. 286,400Tax assessment for 2011……………….. 4,000Taxes paid in 2011 …………………. 3,600Rent expense for 2011 ……………….25,500Rent paid in 2011 …………………. 23,500Required: Compute Gardner Company’s net income for 2011 in a good form(a) Using accrual basis.(b) Using cash basis accounting.View Solution:
In the course of your examination of the book and