On December 31, Greg Jones completed his first year as a financial planner. The following data are available from his accounting records:

a. Compute Greg's net income for the year just ended using the accrual basis of accounting.

b. Compute Greg's net income for the year just ended using the cash basis of accounting.

c. Which net income amount is computed in accordance with generally accepted accounting principles?

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Fees billed to clients for services rendered.... Cash received from clients.. $131,000 Rent expense for year just ended.... $12,000 119,000 Utility expenses incurred 4,500 Supplies purchased for cash 7,100 Utility bills paid... 3,300 Supplies used during the year 6,100 Salary earned by assistant.. 39,400 Cash paid for rent (rent is paid through Mar. of next year)... Salary paid to assistant 35,100 15,000