A Corporation Started Operations on January 1, 2001; the Reporting

Essay

A corporation started operations on January 1, 2001; the reporting period ends December 31. At the end of 2001, the company's records reflected the following correct amounts after all adjusting entries: Sales revenue, $400,000; Cost of goods sold, $232,500; Other expenses (total), $70,000; Accrued wages payable, $1,500; Accounts payable, $6,000 and Accounts receivable, $4,500.
(a) Net income, accrual basis, was $_______________.
(b) Net income, cash basis $__________________.