Please answer with explanations. Answer has been given to us and I am struggling for the steps.

Hi,

I am looking for help with the following questions. Please answer with explanations. Answer has been given to us and I am struggling for the steps.

1.       During 2018 Bamboo Ltd makes credit sales of $200,000 of which $150,000 was collected at year-end. It pays $80,000 in expenses and owes $10,000 for electricity used during 2018. What is Bamboo Ltd's accrual profit?

A.       $110,000

B.       $60,000

C.       $70,000

D.       $120,000

E.       None of the above

2.       Boston  Ltd conducts tennis coaching clinics. The firm receives $300,000 from clients for coaching and ball sales during the year. At year-end one client owes him $2000. The firm paid out $100,000 for court hire and purchase of tennis balls for resale. Boston Ltd owes $10,000 to court owners at year-end. Depreciation on its equipment amounts to $4,000. Accrual profit is:

A.       $192,000

B.       $188,000

C.       $190,000

D.       $186,000

E.       None of the above

The following information relates to Port Headland Ltd and pertains to the next two questions.

3.       Given the following information pertaining to Port Headland Ltd to calculate the firm's accrual profit: