Answer:
Cash-basis accounting $15,600
Accrual-basis Accounting $7,750
Explanation:
A. Calculation to determine the amount of net income that Lauhl should recognize in April under cash-basis accounting
Cash-basis accounting
=$24,000 -$5000-$3,400
Cash-basis accounting =$15,600
Therefore the amount of net income that Lauhl should recognize in April under cash-basis accounting is $15,600
B. Calculation to determine the amount of net income that Lauhl should recognize in April under the accrual-basis Accounting
Accrual-basis Accounting=($24,000/6) -$1300 + $2500 - $3,400 - $850
Accrual-basis Accounting=$4,000-$1,300+$2,500+$3,400-$850
Accrual-basis Accounting=$7,750
Therefore the amount of net income that Lauhl should recognize in April under the accrual-basis Accounting is $7,750
