Exercise 3-41 (Algorithmic) Cash-Basis and Accrual-Basis Accounting The records of Summers Building Company reveal the following information for 2019. a. Cash receipts during 2019 (including $50,000 paid by stockholders in exchange for common stock) were $281,500. b. Cash payments during 2019 (including $7,400 of dividends paid to stockholders) were $164,850. c. Total selling price of services billed to customers during 2019 was $201,100. d. Salaries earned by employees during 2019 were $114,570. e. Cost of supplies used during 2019 in operation of the business was $47,110. Required: 1. Calculate Summers Building Company's net income for 2019 on an accrual basis. $ 39,420 2. Calculate Summers Building Company's net income for 2019 on a cash basis. 66,650 X

Exercise 3-41 (Algorithmic) Cash-Basis and Accrual-Basis Accounting The records of Summers Buliding Company reveal the following information for 2019. a. Cash receipts during 2019 (including $50,000 paid by stockholders in exchange for common stock) were $281,500. b. Cash payments during 2019 (including $7,400 of dividends paid to stockholders) were $164,850. c. Total selling price of services billed to customers during 2019 was $201,100. d. Salaries earned by employees during 2019 were $114,570. e. Cost of supplies used during 2019 in operation of the business was $47,110. Required: 1. Calculate Summers Bullding Company's net income for 2019 on an accrual basis. 2. Calculate Summers Building Company's net income for 2019 on a cash basis. x