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

Essay

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.