On May 1, the bank said it may lend money to Nim Com Soup, Inc. The amount will depend on Nim Com Soup's income statement for the month of May. Since the bank did not specify, Nim Com Soup did not follow generally accepted accounting principles (GAAP). It reported net income for the month ended May 31 of $30,000. The revenue included $1,000 of cash collected in advance from customers for services to be performed in June. The revenue also included a $12,000 increase in the value of its land. The expenses excluded $3,000 it owed for services it received in May. What is Nim Com Soup's GAAP Net Income?

On May 1, Faux Furs, Inc., collected $28,000 from its customers. One quarter of the $28,000 was earned in May and the rest in June through August. During May, Faux Furs' had $4,000 in expenses of which only $1,000 had been paid. How much higher would Faux Furs' net income be in May if it used cash-basis accounting instead of accrual accounting?

Wok On Water, Inc.'s employees had worked during its first month of May and earned $8,000. Wok on Water had paid $1,000 of the amount owed. How much will be reported as Wages Expense on its May income statement?

In its first month of business, Lord of the Fries, Inc., collected $32,000 from customers in advance during May. At May 31, it had a balance in its Unearned Revenue of $9,000. What is the amount of Revenue reported on the income statement for the month ended May 31?