Answer:
The cash-basis net income and accrual-basis net income for the year is $19,500 and $22,800 respectively.
Explanation:
The computation is shown below:
1. Net income under cash basis:
= Received cash from customers - paid cash for salaries
= $43,000 - $23,500
= $19,500
2. Net income under accrual basis:
= Cash received - salary paid
where,
Cash received = Cash owed at the end of the year + cash received - cash owed at the beginning of the year
= $6,600 + $43,000 - $1,000
= $48,600
And, the salary paid = salary owed at the end of the year + salary paid - salary owed at the beginning of the year
= $5,600 + $23,500 - $3,300
= $25,800
Now put these values to the above formula
So, the value would equal to
= $48,600 - $25,800
= $22,800
