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 2012 are $33,640. If this firm had followed accrual basis accounting practices, it would have reported the following year-end balances.
|
2012
|
2011
|
|
Accounts receivable
|
$3,400
|
$2,800
|
|
Supplies on hand
|
1,300
|
1,460
|
|
Unpaid wages owed
|
2,000
|
2,400
|
|
Other unpaid amounts
|
1,400
|
1,100
|
Instructions
Determine the company's net earnings on an accrual basis for 2012. Show all your calculations in an orderly fashion.