Scribd Logo
Upload

Welcome to Scribd!

  • Solutiondone 2-119

    Uploaded by

    trilocksp Singh
    5 views1 page
    Dr. Frieda Rivera acquired $84,000 of equipment and furniture for her new dental practice. In her first year, she collected $79,000 in fees, including $2,000 paid in advance. Her expenses included $7,500 in rent, $800 in utilities, and $17,000 in salaries. She billed an additional $20,000 in fees and $100 in utilities that remained unpaid at the end of the year.

    Original Description:

    upload

    Original Title

    solutiondone 2-119

    Copyright

    © © All Rights Reserved

    Available Formats

    PDF, TXT or read online from Scribd

    Did you find this document useful?

    Is this content inappropriate?

    Report this Document
    Dr. Frieda Rivera acquired $84,000 of equipment and furniture for her new dental practice. In her first year, she collected $79,000 in fees, including $2,000 paid in advance. Her expenses included $7,500 in rent, $800 in utilities, and $17,000 in salaries. She billed an additional $20,000 in fees and $100 in utilities that remained unpaid at the end of the year.

    Copyright:

    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
    Flag for inappropriate content
    5 views1 page

    Solutiondone 2-119

    Uploaded by

    trilocksp Singh
    Dr. Frieda Rivera acquired $84,000 of equipment and furniture for her new dental practice. In her first year, she collected $79,000 in fees, including $2,000 paid in advance. Her expenses included $7,500 in rent, $800 in utilities, and $17,000 in salaries. She billed an additional $20,000 in fees and $100 in utilities that remained unpaid at the end of the year.

    Copyright:

    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
    Flag for inappropriate content
    of 1

    The following are the summarized transactions of dentist

    Frieda Rivera
    The following are the summarized transactions of dentist Frieda Rivera, DDS for 20X1, her first
    year in practice:a. Acquired equipment and furniture for $84,000. Its expected useful life is 6
    years. Dr. Rivera will use straight-line depreciation, assuming zero terminal disposal value.b.
    Fees collected, $79,000. These fees included $2,000 paid in advance by some patients on
    December 31, 20X1.c. Rent is paid at the rate of $500 monthly, payable quarterly on the twenty-
    fifth of March, June, September, and December for the following quarter. Total disbursements
    during 20X1 for rent were $7,500 including an initial payment on January 1.d. Fees billed but
    uncollected, December 31, 20X1, $20,000.e. Utilities expense paid in cash, $700. Additional
    utility bills unpaid at December 31, 20X1, $100.f. Salary expense for dental assistant and
    secretary, $16,000 paid in cash. In addition, $1,000 was earned but unpaid on December 31,
    20X1.Dr. Rivera may elect either the cash basis or the accrual basis of measuring income for
    income tax purposes, provided that she uses it consistently in subsequent years. Under either
    alternative, the original cost of the equipment and furniture must be written off over its 6-year
    useful life rather than being regarded as a lump-sum expense in the first year.1. Prepare income
    statements for the year on both the cash and accrual bases, using one column for each basis.2.
    Which basis do you prefer as a measure of Dr. Rivera’s performance? Why? What do you think
    is the justification for the government’s allowing the use of the cash basis for income tax
    purposes?View Solution: The following are the summarized transactions of dentist Frieda
    Rivera
    SOLUTION-- http://solutiondone.online/downloads/the-following-are-the-summarized-
    transactions-of-dentist-frieda-rivera/

    Unlock answers here solutiondone.online

    You might also like