Mike's Company operations for the month of July are summarized as follows:

1. Provided $7,400 of services on account.
2. Received $3,800 cash from customers for services provided in July.
3. Received $1,300 cash for services to be provided in August.
4. Received $4,100 cash from customers on account for services provided in June.
5. Paid Junes warehouse rental bill on account in the amount of $1,400.
6. Received Julys warehouse rental bill of $1,500; set it aside to be recorded at a later date.

Required:

1. Determine the net income for July using the cash basis of accounting. (The answer for this question is $7,800). We add lines B,C, and D)

b. Determine the net income for July using the accrual basis of accounting. (The answers of this part are not $6,000, $5,900, or $6,400. Please show me how you get the answer to this question in detail.)