Lauht Corporation provides janitorial services to several office buildings. Ouning April, Lauhl engaged in the following transactions a. On April 1, Lauhl received $58,200 from Metro Corporation to provide cleaning services over the next 6 months. b. On April 5, Lauhl purchased and received $8,500 of supplies on credit from Eagle Supply Company, During the month, Lauhl paid $5,000 to Eagle and used $1,300 of the supplies. c. On April 20, Lauhl performed one-time cleaning services of $3,500 for Jones Company Jones poid Lauhi the full amount on May 10 d. On April 30, Lauhl paid employees wages of $7,400. An additional $850 was owed to employees for work performed in April. Required: 1. Calculate the amount of net income that Lauhl should recognize in April under cash-basis accounting 600 X 2. Calculate the amount of net income that Lauhl should recognize in April under accrual basis accounting. Feedback Check My Work 1. Under cash-basis accounting, revenue is recognized when cash is received and expenses are recognized when cash is paid 2. Under accrual-basis accounting, revenue is recognized when it is earned and the collection of cash is reasonably assured (the revenue recognition ponople) Expenses are recognized when incurred, which is generally the same period as the revenue they helped generate (the expense recognition, or matching principle). Previous Ne Check My Work