British Columbia Institute of Technology FMGT 1100 - Accounting 1 S. CASH BASIS VERSUS ACCRUAL BASIS ACCOUNTING (11 Marks) The following transactions for January 2020 are as follows: Jan 1 Purchased a two-year insurance policy for cash, $1,800 9 Performed a service on account, $800 16 Paid wages to employees, $950 18 Completed a job for a customer and collected $600 cash 23 Collected $500 of the amount owed from May 9 30 Accrued wages of $650 Using the Cash basis of accounting, calculate the Net Income (Loss) for January 2020. (5 marks) Using the Accrual basis of accounting, calculate the Net Income (Loss) for January 2020. (6 marks) Page 13