During teh month of August 2014, ADC Co, a CPA service, had the following transactions: Billed $48,000 in revenues on credit Received $2,000 from customers\' accounts receivable Incurred expenses of $6,000 but only paid $5,750 cash for these expenses Prepaid $1,110 for computer services to be used next month Incurred wage expense of $100 but to be paid next month Used office building for the month; depreciation expenseof $4,000 not yet recorded What was the company\'s accrual basis net income for the month and why? Solution.