Answer:
net income cash-basis 8,000
income accrual-basis 7,900
Explanation:
cash revenues 32,000
salaries expense <u> (24,000) </u>
net income cash-basis 8,000
<u>sales for the period:</u>
beginning AR + sales - collected = ending AR
3,000 + sales - 32,000 = 5,500
sales = 34,500
<u>salaries expense:</u>
beginning salaries payables + salaries - paid = ending salaries payable
3,100 + salaries - 24,000 = 5,700
salaries 26,600
revenues 34,500
salaries <u> (26,600) </u>
income accrual-basis 7,900
