Question 4 Academic Consultants Inc. had the following selected transactions in August 2016 Aug 1 Prepaid insurance for August through December. $1,000 4 Purchased software for cash $800 5 Performed service and received cash, 5900 8 Paid veineupee S100 11 Performed service on account. $3.000 19 Purchased computer on account $1.600 24 Collected for the August 11 service 26 Paid Oun payable from August 19 29 Paid salary expense. $900 31 Adjusted for Augustinwrance expense see Aug 3) 31 Earned revenue of 5800 that was collected in advance in July 1 Show how each transaction would be handled using the cash basis and the accrual basis Under each column, give the amount of revenue or expense for August. Journal entries are not required. Use the following format for your answer and show your computations Academic Consultants in Amount of Revenue Expense) for August 2016 Date C ash Basis Aug 1 Revenue Expense Amount Revenue Expensel 2. Compute August income loss) before tax under each accounting method. 3. Explain which measure of net income or net loss is preferable