Determine net income under the cash basis

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During 2012, stacker enterprises earned $55, 00 from services provided and incurred $15,000 of expenses. At the end of the year, stacker had received cash for $35,750 of the revenues and had paid $11,600 of the expenses. Also during 2012, stacker received $3,500 cash for services to be performed in 2013 and paid $4,500 for rent for the first six months of 2013

Determine 2012 net income under (a) the cash basis and (b) the accrual basis of accounting.

Reference no: EM131288461

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