Computing accrual and cash income LO C1 In its first year of operations, Roma Company reports the following: • Earned revenues of $50,000 ($42,000 cash received from customers). • Incurred expenses of $28,000 ($22,000 cash paid toward them). • Prepaid $8,000 cash for costs that will not be expensed until next year. Compute the company's first-year net income under both the cash basis and the accrual basis of accounting. Revenues Expenses Net income Cash Basis $ 43,000 30,600 $ 124,000 Accrual Basis $ 51.000 28,500 $ 22,500 Use the information in the adjusted trial balance presented below to calculate current assets for Taron Company. Account Title Cash Accounts receivable Prepaid insurance Equipment Accumulated depreciation-Equipment Land Accounts payable Interest payable Unearned revenue Long-term notes payable Retained earnings Totals Dr. Cr. $ 35,000 20,000 8,200 140,000 $ 70,000 99,000 21,000 3,400 6,200 42,000 159,600 $302,200 $302,200

For each of the following cases determine the ending balance in the inventory account. (hint: first, determine the total cost of inventory available for sale. next, subtract the cost of the inventory sold to arrive at the ending balance.)a. jill’s dress shop had a beginning balance in its inventory account of $40,000. during the accounting period jill’s purchased $75,000 of inventory, returned $5,000 of inventory, and obtained $750 of purchases discounts. jill’s incurred $1,000 of transportation-in cost and $600 of transportation-out cost. salaries of sales personnel amounted to $31,000. administrative expenses amounted to $35,600. cost of goods sold amounted to $82,300.b. ken’s bait shop had a beginning balance in its inventory account of $8,000. during the accounting period ken’s purchased $36,900 of inventory, obtained $1,200 of purchases allowances, and received $360 of purchases discounts. sales discounts amounted to $640. ken’s incurred $900 of transportation-in cost and $260 of transportation-out cost. selling and administrative cost amounted to $12,300. cost of goods sold amounted to $33,900.a& b. cost of goods avaliable for sale? ending inventory?