Greenfingers Ltd opened a gardening consulting company on 1 August 2016 with each of the two owners contributing $10 000 cash. A one-year bank loan of $40 000 at 12 percent per annum was obtained from the bank on 1 August, with principal and interest to be repaid at the end of the loan. An insurance policy for 12 months was taken out on 1 August 2016 for $600. Three months' office rental for $900 was paid in advance on 1 August 2016. Consulting revenue of $10000 was earned during the month, but $6000 had not been received at the end of August. A truck that cost $36 000 was paid for in cash on 1 August. It had an expected life of three years and zero residual value. Cash expenses during the month were: wages, $600; other expenses, $400. Unpaid bills at month's end were: electricity, $100; wages, $200.
Prepare an income statement for August 2016 under

(a) An accrual basis and

(b) A cash basis of accounting.