In its first year of operations, Wildhorse Co. recognized $29,500 in service revenue, $8,100 of which was on account and still outstanding at year-end. The remaining $21,400 was received in cash from customers. The company incurred operating expenses of $18,800. Of these expenses, $13,730 were paid in cash; $5,070 was still owed on account at year-end. In addition, Wildhorse prepaid $2,610 for insurance coverage that would not be used until the second year of operations.

Calculate the first years net earnings under the cash basis of accounting, and the first years net earnings under the accrual basis of accounting.