ng the cash basis and the accrual basis. (Enter "O" for any transactions that do not affect revenues or exp i Requirements 1. Show how each transaction would be handled (in terms of recognizing revenues and expenses) using the cash basis and the accrual basis. 2. Compute July income (loss) before tax under each accounting method. 3. Indicate which measure of net income or net loss is preferable. Use the transactions on July 11 and July 24 to explain. Print Done ZET 26 29 31 31 Question Help King Consulting had the following selected transactions in July (Click the icon to view the transactions) Read the Requirement 1. Show how each transaction would be handed using the cash basis and the basis. Under each column, give the amount of revenue or expense for July using the cash basis and the accrual basis (Erter for any transactions that do not affect revenues or expenses. Use parentheses or a minussi when entering expenses or le Round your answers to the nearest whole dolar) Amount of Revenue (Expense) for July Accrual Basic Revenue pense Reversor Expense) Date July 4 5 11 19 24 28 31 31 Enter any number in the edited and then continue to the next question 31 Requirement 2. Compute July income oss before tax under ench accounting method hooma (loss) before tax Requirements. Indicale which measure of net income rretons is preferable. Use the actions on July 11 and 24 to explain The measure of net income is preferable because counts for revenues and expenses when they not when they W basis records his revenue, but the 53.100 of revenue and increased to wealth as a resThe basis ignoresit For example on July 11, the company basis records no revenue on My 24 because the company's increase in wealth occurred back on My 11. The On July 24, the business collected the receivable that was created by the revenus earned on account at y 11. The basis wait until cash is received on July 24, to record the revenue. This is Enter any number in the edit fields and then continue to the next question cash * More Info g theo nues July 1 4 5 8 11 19 24 26 29 31 31 Prepaid insurance for July through September, $3,000. Purchased office furniture for cash, $3,500, Performed services and received cash, $1,500. Paid advertising expense, $600. Performed service on account, $3,100. Purchased computer on account, $1,600. Collected for July 11 service. Paid account payable from July 19. Paid salary expense, $1,500. Adjusted for July insurance expense (see July 1). Earned revenue of $900 that was collected in advance back in June. Recorded July depreciation expense on all fixed assets, $260. 31 Print Done 31 ext question. MacBook Air