Required:

For each transaction, determine the amount of revenue or expense, if any, that is recorded under accrual$-$basis accounting and under

cash$-$basis accounting in the current period.

Transaction

Receive cash from customers in advance of services to be provided, $$520.$

Pay utilities bill for the previous period, $$110.$

Pay for insurance in advance of the period to be covered, $$1,600.$

Pay workers' salaries for the current period, $$720.$

Incur costs for employee salaries in the current period but do not pay, $$920.$

Receive cash from customers at the time of service, $$1,300.$

Purchase office supplies on account, $$250.$

Borrow cash from the bank, $$3,200.$

Receive cash from customers for services performed in the previous period, $$670.$

Pay for advertising to appear in the current period, $$370.$