Please answer!!! accounting problem!!!?

Question

if operations for an accounting period resulted in fees for cash of $19,000, fees on account of $7,000, and expenses paid in cash of $50,000, did the business incur a net income or a net loss for the period?

please explain how you resolved!!!!!!!! it is urgent!!!!

Answer 1

Let's see,

Revenues however paid are recorded in the period in which the invoice was issued, generally in the period the work was performed.  So total invoices of 19000 + 7000 = 26000.  Total expenses, however paid, are recorded when the incoming invoice is received.  So total expenses where 50000.  So, net profit was 26000 - 50000 = -24000.  Nasty loss!

Answer 2

you had a net loss for the period.  You had fees of $26k and expenses of $50k.  This means that you had a $24k loss.  If your expenses are greater than your fees then you have a loss.  If you fees are greater than your expenses then you have a profit.

Answer 3

If they paid out 50,000

and were only paid 19,000 cash

and 7000 on account (not truly paid)

they incurred a loss.

This means their expenses were

more than the fees they charged or

were paid.

50,000 went out

only 26,000 came in.

Loss of 24,000.  And yes,

if it is cash based, the 7000

charged fees do not count,

so Loss would be 31,000.

Answer 4

Assuming that the fees are income and that the accounting method is not cash based, there would be a net loss of $24,000 for the period. If the method is cash based, net loss would be $31,000.

Answer 5

Jeez!, it looks like somebody will rob a bank :))

IDK

Answer 6

I am not an accountant but I do accounting work. I think the company had a net loss. That is if the expenses were incurred during that same period. Otherwise you need to only look at those income and expense items that occurred in that period. Those items that occurred in prior periods would be handled differently.  The bottom line results are basically the same however. That said;

Income 7,000 + 19,000 = 26,000

Expenses                     - 50,000  

Net loss                    ( $ 24,000 )

Answer 7

I would say net loss but you don't have any information on their profit, either - you only mention fee's & expenses that I assume were paid by the business.

Answer 8

A big-time net loss.

Expenses.................50000

Income

Fees...........19000

On Account..7000

..................______

Total...........26000....26000

............................_________

Net.........................24000 loss (50000-26000)