Moore, Corp. completed the following selected transactions during May:

May 1 Paid $2,700 for insurance.covers till end of July.

May 3 Performed service on account, $2,500

May 6 Purchased office furniture on account, $900

May 8 Paid property tax expense, $500

May 12 Purchased office equipment for cash, $1,500

May 18 Performed services and received cash, $3,500

May 23 Collected $800 on account

May 26 Paid the accounts payable from the May 6 transaction

May 29 Paid salaries expense, $1,300

May 30 Declared dividends of $1,000, but they will not be paid until June 2

Required:

a) State whether the transaction would increase revenues, decrease revenues, increase expenses, decrease expenses, or have no effect on revenues or expenses. If revenues or expenses are affected, give the amount of the impact on revenues or expenses for May. Use the following format for your answer.

Revenues and Expenses for May
Date	Impact on Revenues or Expenses	$ Effect on Revenues or Expenses
May XX	Increase Revenues	$XXX
May 1
May 3
May 6
May 8
May 12
May 18
May 23
May 26
May 29
May 30

b) Compute May Profit/Net Income or Loss under the Accrual basis of accounting (based on all of the above transactions between May 1 May 30).

c) Compute May Profit/Net Income or Loss under the Cash basis of accounting (based on transactions between May 1 May 30).

d) State which Basis of Accounting results in a more accurate measurement of Profit/ Income.