August 1 Prepaid insurance for August through October, $1,500. August 4 Purchased office furniture for cash, $6,000. August 5 Performed services and received cash, $1,100. August 8 Paid advertising expense, $100. August 11 Performed service on account, $2,700. August 19 Purchased computer on account, $1,600. August 24 Collected for August 11 service. August 26 Paid account payable from August 19 August 29 Paid salary expense, $1,200. August 31 Adjusted for August insurance expense (see August 1). August 31 Earned revenue of $1,000 that was collected in advance back in July August 31 Recorded August depreciation expense on all fixed assets, $208 Print Done Kings Consulting had the following selected transactions in August Click the icon to view the transactions.) Read the requirements Requirement 1. Show how each transaction would be handled using the cash basis and the sorunl basis, Under each column, olve the amount of revenue or expense for August using the cash basin and the accrual basis (Enter "o" for any transactions that do not nffect revenues or expornos. Use parentheses or a minun sign when entering expenses or losses. Round your answers to the nearest whole dollar) Amount of Revenue (Expense) for August Cash Basis Accrual Bani Revenue or (Expense) Revenue or (Expense) August Date 5 5 11 19 24 26 20 31 31 ings Consulting had the following selected transactions in August Click the icon to view the transactions.) Read the requirements 29 31 31 31 Requirement 2. Calculato August income (los) before tax under each accounting method Income (los) before tax Requirement 3. Indicato which measure of net income or net loss is proferable. Use the transactions on August 11 and August 24 to explain The mollsure of net income is preferable because it accounts for revenues and expenses when they they not when For example, on August 11, the company V basis ignores 52,700 of revenue and incronted its wealth as a rosult. The W basis records this revenue, but the On August 24, the business collected the receivable that was created by the revenue oamed on account at August 11. The basis records no revenue on August 24 because the company's increase in wealth occurred back on August 11. The V basis waits until cash in received on August 24, to record the revenue. This is Nova