cash basis and accrual basis accounting qs.

it would be greatly appreciated thank you :,)

a)

b)

Expenses and the Matching Process The following information describes transactions for Morgenstern Advertising Company during July: a. On July 5 , Morgenstern purchased and received $24,300 of supplies on credit from Drexel Supply Inc. During July, Morgenstern paid $23,040 cash to Drexel and used $17,290 of the supplies. b. Morgenstern paid $13,040 to salespeople for salaries earned during July. An additional $1,710 was owed to salespeople at July 31 for salaries earned during the month. c. Morgenstern paid $2,950 to the local utility company for electric service. Electric service in July was $2,300 of the $2,950 total bill. Required: 1. Calculate the amount of expense recognized in July under cash-basis accounting. 2. Calculate the amount of expense recognized in July under accrual-basis accounting. Accrual-and Cash-Basis Accounting The following are several transactions for Halpin Advertising Company. a. Purchased $1,000 of supplies. b. Sold $5,000 of advertising services, on account, to customers. c. Used $250 of supplies. d. Collected $3,000 from customers in payment of their accounts. e. Purchased equipment for $10,000 cash. f. Recorded $500 depreciation on the equipment for the current period. Required: Identify the effect, if any, that each of the above transactions would have on net income under cash-basis accounting and accrual-basis accounting. If your answer is zero, enter " 0 ". Enter negative values as negative numbers