Yards, Inc. mows lawns at a fee of $100 per month. In the currentyear, 200 customers prepaid for the four months in thesummer, beginning on May 1st. Yards received $80,000 of cash receipts ($100 per month x 200 customers x 4months) in May. Yards, Inc. provided the required service for four months by mowing lawns throughoutMay, June,July, and August. During thosemonths, the company incurred expenses of $10,000, $13,000, $12,000, and $10,000, respectively, and paid these expenses during the same month it consumed the economic benefit.

Determine Yards Inc.'s net income for each month from May through August under both the cash and the accrual bases of accounting.

Begin by computing the amount of revenue to be recognized for each month and the total revenue to be recognized under both the cash and the accrual bases of accounting. Then compute the expenses to be recognized for each month and the total expenses to be recognized under both the cash and the accrual bases of accounting.Lastly, compute Yards Inc.'s net income for each month and total net income under both the cash and the accrual bases of accounting. (Enter expenses as positive amounts. Enter a"0" for any zero balances. Use parentheses or a minus sign for a netloss.)