P3-1B Valleydale Bone and Joint Clinic completed the following selected transactions during May: May 2 Prepaid insurance for May through July, $800. 5224 4 Paid gas bill. $550. 9 12 14 28 29 30 31 Performed services on account, $1.000. Purchased office equipment for cash. $1.400. Received cash for services performed. $900. Purchased office equipment on account, $300. Collected $500 on account from May 5. Paid salary expense. $1,100. Paid account payable from May 14. Recorded adjusting entry for May insurance expense (see May 21. 31 Debited unearned revenue and credited revenue in an adjusting entry. $700. Required 1. Show how each transaction would be handled using the accrual basis of accounting. Give the amount of revenue or expense for May. Journal entries are not required. Use the fol- lowing format for your answer, and show your computations: Amount of Revenue (Expense) for May Date Revenue (Expense) Accrual-Basis Amount 2. Compute May net income or net loss under the accrual basis of accounting. 3. Why is the accrual basis of accounting preferable to the cash basis?