DoItForYou Concierge Services experienced the following selected transactions during October:

Required

1. Show how each transaction would be accounted for using the accrual basis of accounting. Use the format below for your answer and show your  computations. Give the amount of revenue or expense for October. Journal entries are not required.

2. Compute October net income or net loss under the accrual basis of accounting.

3. Why is the accrual basis of accounting preferable to the cash basis?

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Oct. 1 4 5 9 12 14 28 31 31 31 Paid for insurance for October through December, $9,000. Paid utility invoice with cash, $1,200. Performed services on account, $8,000. Purchased office equipment for cash, $7,000. Received cash for services performed, $4,400. Purchased office equipment on account, $2,400. Collected $3,000 on account from October 5. Paid salaries expense, $4,500 cash. Paid account payable from October 14. Recorded adjusting entry for October insurance expense (see October 1).