In its first year of operations, Harden Co. earned $39,000 in revenues and received $33,000 cash from
These customers. The company incurred expenses of $22,500 but had not paid $2,250 of them at yearend.
Harden also prepaid $3,750 cash for expenses that would be incurred the next year. Calculate
The first year’s net income under both the cash basis and the accrual basis of accounting.
