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

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

b. Compute John'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 $137,000 Rent expense for year just ended... $12,000 Cash received from clients... 115,000 Utility expense incurred. 3,100 Supplies purchased for cash 9,000 Utility bills paid.... 3,200 Supplies used during the year. 6,800 Salary earned by assistant. 39,000 Cash paid for rent (rent is paid through Feb. of next year).. Salary paid to assistant 35,000 14,000