Acompany paid $900 to workers during may. of this amount, $600 was for work performed in april, while the other $300 was for work performed during may. what would the impact of this transaction be during may on (1) the balance of cash, (2) cash-basis net income, and (3) accrual-basis net income?

a) The balance of cash  is decrease by $900 as all amount paid to the worker

b) Cash basis net income  decrease by $900

c) Accrual basis net income decrease by $300

Explanation:

Given data:

Total amount paid to worker $900

Total amount paid to worker in month of APRIL =$600

Total amount paid to worker in month of may is $300

from above data we can calculated following

a) The balance of cash  is decrease by $900 as all amount paid to the worker

b) Cash basis net income = Net income decrease by $900

c) Accrual basis net income = Net income decrease by $300