The Striped Marlin Company (SMC) maintains its records on the cash basis of accounting during the year and then records adjusting entries at the end of the year to convert them to the accrual basis of accounting The Companys year end is December 31 The following occurred during the year Based only on the forgoing information, SMC received S400,000 from customers for services performed in this current year and received $5,000 from a customer who owed a balance for a trip last year On March 1, 2020, SMC borrowed $200,000 from a bank The full principal amount and interest at 6 will be paid on February 28, 2022 The loan proceeds were recorded as a liability of $200,000 No amounts were recorded for interest for 2020 On April 1, 2020, SMC paid $132,000 for rent of prime space at the marina for 2 years The entire amount was recorded as rent expense when the payment was made On October 1, 2020, SMC received $10,400 from a customer for a deep sea fishing trip in 2021 The full amount was recorded as revenue when the payment was received The SMC pays its employees a biweekly salary of $2,000 The salaries are paid every 2 weeks on Monday for the immediately preceding 2 week period (for example, $2,000 paid on Monday January 10 is payment for the 2 weeks ended Friday January 7 ) Total salary expense paid and recorded for the year ended December 31 is $52,000 a What is the cash basis net income or loss for the year ended December 31, 2020 Please show your work and label the amounts in your calculation b Prepare the necessary adjusting entry, if any, for items 1 5 above to covert the cash basis accounting to accrual basis accounting If there is no entry required, please so state Please label each entry by the item number clearly label the journal entry to indicate the debit and credit account, whether the account is a balance sheet or income statement account the amount and include a description for the entry Also, show your work for calculated amounts c What is the accrual basis net income or loss for the year ended December 31, 2020 Please show your work and label the amounts in your calculation

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The Striped Marlin Company (SMC) maintains its records on the cash basis of accounting during the year and then records adjusting entries at the end

The Striped Marlin Company (SMC) maintains its records on the cash basis of accounting during the year and then records adjusting entries at the end of the year to convert them to the accrual basis of accounting. The Companys year-end is December 31.

The following occurred during the year:

Based only on the forgoing information,

SMC received S400,000 from customers for services performed in this current year and received $5,000 from a customer who owed a balance for a trip last year.
On March 1, 2020, SMC borrowed $200,000 from a bank. The full principal amount and interest at 6% will be paid on February 28, 2022. The loan proceeds were recorded as a liability of $200,000. No amounts were recorded for interest for 2020.
On April 1, 2020, SMC paid $132,000 for rent of prime space at the marina for 2 years. The entire amount was recorded as rent expense when the payment was made.
On October 1, 2020, SMC received $10,400 from a customer for a deep-sea fishing trip in 2021. The full amount was recorded as revenue when the payment was received.
The SMC pays its employees a biweekly salary of $2,000. The salaries are paid every 2 weeks on Monday for the immediately preceding 2-week period (for example, $2,000 paid on Monday January 10 is payment for the 2 weeks ended Friday January 7.) Total salary expense paid and recorded for the year ended December 31 is $52,000.

a. What is the cash basis net income or loss for the year ended December 31, 2020? Please show your work and label the amounts in your calculation.

b. Prepare the necessary adjusting entry, if any, for items 1-5 above to covert the cash basis accounting to accrual basis accounting. If there is no entry required, please so state.

Please label each entry by the item number; clearly label the journal entry to indicate the debit and credit account, whether the account is a balance sheet or income statement account; the amount; and include a description for the entry. Also, show your work for calculated amounts.

c. What is the accrual basis net income or loss for the year ended December 31, 2020? Please show your work and label the amounts in your calculation.