In its first year of operations, Sunland Company recognized $23,520 in service revenue, $5,040 of which was on account and still outstanding at year-end. The remaining $18,480 was received in cash from customers. The company incurred operating expenses of $13,272. Of these expenses, $10,080 were paid in cash; $3,192 was still owed on account at year-end, In addition, Syiniand prepaid $2,016 for insurance coverage that would not be used until the second year of operations: (a) Calculate the first year's net earnings under the cash basis of accounting, and calculate the first year's net earnings under the accrual basis of accounting