The following events took place at Forrest's Tree Service during the first quarter of the year. Determine Forrest's net income for each month, including a quarterly total, under both the cash and accrual bases of accounting.
a. Performed tree services in January - billed clients for $5,000.
b. Monthly saw sharpening - January, February, March - paid $500 per month.
c. Collected $2,500 from January clients on February 10th.
d. Performed tree services in February - billed clients for $8,000.
e. Employees are paid every other month; salary expense is $5,000 per month - paid on February 28.
f. Performed tree services in March - billed clients for $10,000 - also collected remaining January balance and $5,000 due from February.

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The Answer of The following events took place at Forrest's Tree Service during the first quarter of the year. Determine Forrest's net income for each month, including a quarterly total, under both the cash and accrual bases of accounting.
a. Performed tree services in January - billed clients for $5,000.
b. Monthly saw sharpening - January, February, March - paid $500 per month.
c. Collected $2,500 from January clients on February 10th.
d. Performed tree services in February - billed clients for $8,000.
e. Employees are paid every other month; salary expense is $5,000 per month - paid on February 28.
f. Performed tree services in March - billed clients for $10,000 - also collected remaining January balance and $5,000 due from February.

The Following Events Took Place at Forrest's Tree Service During