Based on the following transactions, calculate the revenues, expenses, and net income that would be reported on

(a) The cash basis

(b) The accrual basis:

i. Inventory costing $70,000 was purchased on account.

ii. Inventory costing $60,000 was sold for $100,000. Eighty percent of the sales were for cash.

iii. Cash collected from credit customers (those who bought on account) totalled $20,000.

iv. A lease was signed at the beginning of the year, requiring monthly payments of $1,000. The rent for the first month was paid when the lease was signed. After that, the $1,000 rent was paid on the last day of each month, to cover the following month.

v. Supplies costing $5,500 were purchased for cash. At the end of the year, $500 of the supplies were still unused.

vi. Wages of $37,500 were paid during the year. Also, wages of $500 remained unpaid at year end.