Helgeson Enterprises, Corp., completed the following selected transactions and prepared these adjusting entries during January:

2. Compute January net income or net loss under the accrual basis of accounting.
3. State why the accrual basis of accounting results in an accurate measurement of income.

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3 6 8 12 Prepaid insurance for January through March, $750. Performed service on account, $1,800. Purchased office furniture on account, $350. Paid property tax expense, $600. Purchased office equipment for cash, $1,400. 18 Performed services and received cash, $4,700. 23 26 30 31 31 Collected $900 on account. Paid the account payable from the January 6 transaction. Paid salary expense, $2,400. Recorded an adjusting entry for January insurance expense related to the January 1 transaction. Recorded an adjusting entry for unearned revenue now earned, $400.