Connection Station, an internet café, had the following operating activities during the month of May:

1. Bought 800 in jump drives and disks, which are available for resale from Office Depot on credit
2. Paid 900 in utilities for the month of may
3. Paid 2000 rent for the month of may
4. Sold jump drives and other inventory to customers for 4000 on credit, which cost the company 500
5. Collected 2500 of the 4000 that was sold on credit
6. Paid cash for 2200 for goods for resale from staples Inc.
7. Paid employees for their work in My for 2000
8. Collected internet usage fees from customers in cash totaling 12500 for the month
9. Paid 5000 for a one year insurance policy beginning June 1
10. Employees earned an additional 1000 of wages but would not be paid until June 1
Please prepare an accrual basis income statement and enter it as you r answer. You can left-align a

To prepare an accrual basis income statement, we need to calculate the revenues and expenses for the month of May.

Let's break down the information provided and determine the revenues and expenses:

Revenues:
- Sales revenue: $4,000 (collected in cash)
- Internet usage fees: $12,500 (collected in cash)

Expenses:
- Cost of goods sold: $500 (from the sale of jump drives and other inventory)
- Utilities: $900
- Rent: $2,000
- Office supplies: $800
- Goods for resale: $2,200
- Employee wages: $2,000

Now, let's calculate the net income by subtracting the expenses from the revenue:

Net Income = (Sales revenue + Internet usage fees) - (Cost of goods sold + Utilities + Rent + Office supplies + Goods for resale + Employee wages)

Net Income = ($4,000 + $12,500) - ($500 + $900 + $2,000 + $800 + $2,200 + $2,000)

Net Income = $16,500 - $8,400

Net Income = $8,100

Therefore, the accrual basis income statement for the month of May would be as follows:

Income Statement for May:
Revenues:
Sales revenue: $4,000
Internet usage fees: $12,500
Total Revenues: $16,500

Expenses:
Cost of goods sold: $500
Utilities: $900
Rent: $2,000
Office supplies: $800
Goods for resale: $2,200
Employee wages: $2,000
Total Expenses: $8,400

Net Income: $8,100

Note: The formatting of the income statement may vary depending on the requirements or preferences of the organization.