Daube Company's Operations for the Month of July Are Summarized

Essay

Daube Company's operations for the month of July are summarized as follows:
A.Provided $10,000 of services on account.
B.Received $8,000 cash from customers for services provided in July.
C.Received $2,000 cash for services to be provided in August.
D.Received $6,000 cash from customers on account for services provided in June.
E.Paid June's warehouse rental bill on account in the amount of $2,000.
F.Received July's warehouse rental bill of $3,000;set it aside to be recorded at a later date.
Required:
a.Determine the net income for July using the cash basis of accounting.
b.Determine the net income for July using the accrual basis of accounting.