Jim's Gymnastics Training's operations for the month of October are summarized as follows:
A.Provided $5,000 of training to students on account.
B.Received $4,000 cash from students for training provided in October.
C.Received $1,000 cash for training to be provided in November.
D.Received $3,000 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 $1,500; set it aside.
Required:
Part a.Determine the net income for October using the cash basis of accounting.
Part b.Determine the net income for October using the accrual basis of accounting.

Question

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The Answer of Jim's Gymnastics Training's operations for the month of October are summarized as follows:
A.Provided $5,000 of training to students on account.
B.Received $4,000 cash from students for training provided in October.
C.Received $1,000 cash for training to be provided in November.
D.Received $3,000 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 $1,500; set it aside.
Required:
Part a.Determine the net income for October using the cash basis of accounting.
Part b.Determine the net income for October using the accrual basis of accounting.

Jim's Gymnastics Training's Operations for the Month of October Are