Answer: (1) $5,290
(2) $3,470
Explanation:
Net Income from Accrual method:
= Served a banquet account - received and paid electricity bill + Received cash meals to customers - Accrued salary expense - Prepaid insurance expired
= $2,810 - $140 + $3,610 - $800 - $190
= $5,290
Net Income from Cash method:
= Received cash meals to customers - received and paid electricity bill
= $3,610 - $140
= $3,470