Clean Trim,

Inc. mows lawns at a fee of $ 80 per month. In the current year, 160 customers prepaid for the four months in the summer, beginning on May 1st. Clean Trim received $ 51,200 of cash receipts ($ 80 per month x 160 customers x 4 months) in May. Clean Trim, Inc. provided the required service for four months by mowing lawns throughout May, June, July, and August. During those months, the company incurred expenses of $ 10,300,$ 12,900,$ 12,300,and $ 10,300 respectively, and paid these expenses during the same month it consumed the economic benefit.

Determine Clean Trim Inc.'s net income for each month from May through August under both the cash and the accrual bases of accounting.

Begin by computing the amount of revenue to be recognized for each month and the total revenue to be recognized under both the cash and the accrual bases of accounting. Then compute the expenses to be recognized for each month and the total expenses to be recognized under both the cash and the accrual bases of accounting. Lastly, compute Clean Trim Inc.'s net income for each month and total net income under both the cash and the accrual bases of accounting. (Enter expenses as positive amounts. Enter a "0" for any zero balances. Use parentheses or a minus sign for a net loss.)

	Revenue Recognition
Month	Cash Basis	Accrual Basis
May
June
July
August
Total

Expense Recognition
Cash Basis	Accrual Basis

Net Income
Cash Basis	Accrual Basis