Exercise 218 a-b Hal Corp. prepared the following income statement using the cash basis of accounting: HAL CORP. Income Statement, Cash Basis For the Year Ended December 31, 2020 Service revenue (does not include $25,000 of services rendered on account because the collection will not be until 2021) Expenses (does not include $15,000 of expenses on account because payment will not be made until 2021) $370,000 220,000 Net income $150,000 Additional data: Depreciation on a company automobile for the year amounted to $6,000. This amount is not included in the expenses above. On January 1, 2020, paid for a two-year insurance policy on the automobile amounting to $1,800. This amount is included in the expenses above. 1. 2. Recast the above income statement on the accrual basis in conformity with generally accepted accounting principles. (Enter negative amounts using either a nee HAL CORP Income Statement For the Year Ended December 31, 2020 Which basis (cash or accrual) provides a better measure of income? basis of accounting provides a better measure of income. The