Daube Company's operations for the month of July are summarized as follows:
A.Provided $10,000 of services on account.
B.Received $8,000 cash from customers for services provided in July.
C.Received $2,000 cash for services to be provided in August.
D.Received $6,000 cash from customers on account for services provided in June.
E.Paid June's warehouse rental bill on account in the amount of $2,000.
F.Received July's warehouse rental bill of $3,000;set it aside to be recorded at a later date.
Required:
a.Determine the net income for July using the cash basis of accounting.
b.Determine the net income for July using the accrual basis of accounting.

Question

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The Answer of Daube Company's operations for the month of July are summarized as follows:
A.Provided $10,000 of services on account.
B.Received $8,000 cash from customers for services provided in July.
C.Received $2,000 cash for services to be provided in August.
D.Received $6,000 cash from customers on account for services provided in June.
E.Paid June's warehouse rental bill on account in the amount of $2,000.
F.Received July's warehouse rental bill of $3,000;set it aside to be recorded at a later date.
Required:
a.Determine the net income for July using the cash basis of accounting.
b.Determine the net income for July using the accrual basis of accounting.

Daube Company's Operations for the Month of July Are Summarized