Brendan's Alarm Company sells subscriptions to its monitoring service at a fee of $75 per month. Clients pay bimonthly, every two months. As of January 1, Brendan currently has 50 clients paying on an even month rotation (February, April, etc.) and 30 clients paying on an odd month rotation (January, March, etc.). Brendan incurs expenses each month for $100 in electric bills and pays the bill every other month. The next payment for utilities is due in February. Determine Brendan's Alarm Company's net income for each month for the first quarter of the year, as well as the quarterly total, under both the cash and accrual bases. Is the quarterly total the same? If it is different, what would account for this?

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The Answer of Brendan's Alarm Company sells subscriptions to its monitoring service at a fee of $75 per month. Clients pay bimonthly, every two months. As of January 1, Brendan currently has 50 clients paying on an even month rotation (February, April, etc.) and 30 clients paying on an odd month rotation (January, March, etc.). Brendan incurs expenses each month for $100 in electric bills and pays the bill every other month. The next payment for utilities is due in February. Determine Brendan's Alarm Company's net income for each month for the first quarter of the year, as well as the quarterly total, under both the cash and accrual bases. Is the quarterly total the same? If it is different, what would account for this?

Brendan's Alarm Company Sells Subscriptions to Its Monitoring Service at a Fee