Consider the following set of transactions occurring during the month of May for Bison Consulting Company. For each transaction, indicate the impact on

(1) The balance of cash,

(2) Cash-basis net income,

(3) Accrual-basis net income for May.

The first answer is provided as anexample.

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Cash-Basis Accrual-Basis Balance Net Income Net Income Cash Impact on: (a) Receive $1,500 from customers who were (b) Provide $3,200 of consulting services to (c) Purchase office supplies for $400 on +$1,500 +$1,500 $0 billed for services in April. a local business. Payment is not expected until June. account. All supplies are used by the end of May May and $200 is for work in April. in May (d) Pay $600 to workers. $400 is for work in (e) Pay $200 to advertise in a local newspaper Totals