QS 3-2 Computing accrual and cash income LO C1 In its first year of operations, Roma Company reports the following: Earned revenues of $50,000 ($42,000 cash received from customers). Incurred expenses of $28,000 ($22,000 cash paid toward them). Prepaid $8,000 cash for costs that will not be expensed until next year. Compute the company's first-year net income under both the cash basis and the accrual basis of accounting. Revenues Expenses Net income Cash Basis $ 43,000 30,600 $ 124,000 Accrual Basis $ 51.000 28,500 $ 22,500 Use the information in the adjusted trial balance presented below to calculate current assets for Taron Company. Account Title Cash Accounts receivable Prepaid insurance Equipment Accumulated depreciation-Equipment Land Accounts payable Interest payable Unearned revenue Long-term notes payable Retained earnings Totals Dr. Cr. $ 35,000 20,000 8,200 140,000 $ 70,000 99,000 21,000 3,400 6,200 42,000 159,600 $302,200 $302,200