Jim\'s Gymnastics Training\'s operations for the month of October are summarized

Question

Jim's Gymnastics Training's operations for the month of October are summarized as follows: A.Provided $7,600 of training to students on account. B.Received $4,000 cash from students for training provided in October. C.Received $1,700 cash for training to be provided in November. D.Received $4,300 cash from students on account for training provided in September E. Paid September's gym rental bill on account in the amount of $1,000 F. Received October's rental bill of $1,400; set it aside. Required: a. Calculate Net Income for October using the cash basis of accounting. Net Income b. Calculate Net Income for October using the accrual basis of accounting. Net Income

Explanation / Answer

a Cash basis Revenues 10000 =4000+1700+4300 Rental Expenses 1000 Net income 9000 b Revenues 7600 Rental Expenses 1400 Net income 6200

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