ALLing 13 (ACC 171-185-2 Exercise 218 a-b Hal Corp. prepared the following income statement using the cash basis of accounting: CALCULATOR STANDARD VIEW PRINTER VERSION BACK HAL CORP. Income Statement, Cash Basis For the Year Ended December 31, 2020 Service revenue (does not include $25,000 of services rendered on account because the collection will not be until 2021) Expenses (does not include $15,000 of expenses on account because payment will not be made until 2021) Net Income $370,000 220,000 $150,000 Additional data: 1. Depreciation on a company automobile for the year amounted to $6,000. This amount is not included in the expenses above. On January 1, 2020, paid for a two-year insurance policy on the automobile amounting to $1,800. This amount is induded in the expenses above. 2. Recast the above income statement on the accrual basis in conformity with generally accepted accounting principles. (Enter negative amounts using either a negative sign preceding the number e.g.-45 or parentheses e.g. (45).) HAL CORP. Income Statement For the Year Ended December 31, 2020 UUUU. i his amount is not indu ary 1, 2020, paid for a two-year Insurance policy on the automobile amounting to $1,800 Wii wai Recast the above income statement on the accrual basis in conformity with generally accepted accounti sign preceding the number e.g. -45 or parentheses e.g. (45).) HAL CORP. Income Statement For the Year Ended December 31, 2020 $ Which basis (cash or accrual) provides a better measure of income? The basis of accounting provides a better measure of income