Question

The following transactions for Carleton Company occurred duringJanuary 2016: Jan. 1 Purchased a two-year insurance policy forcash, $8,400 4 Paid utilities bill received December 2015, $450 9Performed a service on account, $1,200 16 Paid bimonthly salary toemployees, $2,700 21 Received $800 from a customer on account 25Received $600 from January 9 transaction 30 Prepared the adjustingentry for insurance from January 1 transaction 30 Accrued wages of$2,750 Required: Show the total amount of revenue and expenserecognized under both the accrual basis and cash basis ofaccounting. Accrual Basis Revenue Total Expense Total Cash BasisRevenue Total Expense Total