Question: The records of Summers Building Company reveal the following information for 2019.
1. Cash receipts during 2019 (including $50,000 paid by stockholders in exchange for common stock) were $277,900.
2. Cash payments during 2019 (including $7,000 of dividends paid to stockholders) were $164,850.
3. Total selling price of services billed to customers during 2019 was $200,800.
4. Salaries earned by employees during 2019 were $116,860.
5. Cost of supplies used during 2019 in operation of the business was $47,090.
Required: 1. Calculate Summers Building Company's net income for 2019 on an accrual basis.
2. Calculate Summers Building Company's net income for 2019 on a cash basis.