Question

Cash versus Accrual Bases of Accounting. The following eventsoccurred at VG Consulting during the most recent month.

a. VG provided consulting services and billed clients $2000.

b. VG collected $1,500 for consulting services performed in theprior month.

c. VG paid its monthly electric bill of $300.

d. Employees who worked for VG were not paid for the servicesperformed. Next month they will be paid $850.

e. VG collected fees of $700 for services to be performed in thefollowing month.

For each event, determine the revenue or expense under the cashand accruall basis of accounting.