Reporting Cash Basis versus Accrual Basis Income
Mostert Music Company had the following transactions in March:
a. sold instruments to customers for $10,000; received $6,000 in cash and the rest on account.
The cost of the instruments was $7,000.
b. Purchased $4,000 of new instruments inventory; paid $1,000 in cash and owed the rest on Account.
c. Paid $600 in wages for the month.
d. Received a $200 bill for utilities that will be paid in April.
e. Received $1,000 from customers as deposits on orders of new instruments to be sold to the Customers in April.

Reporting Cash Basis versus Accrual Basis Income
Mostert Music Company had the following transactions in March:
a. sold instruments to customers for $10,000; received $6,000 in cash and the rest on account.
The cost of the instruments was $7,000.
b. Purchased $4,000 of new instruments inventory; paid $1,000 in cash and owed the rest on Account.
c. Paid $600 in wages for the month.
d. Received a $200 bill for utilities that will be paid in April.
e. Received $1,000 from customers as deposits on orders of new instruments to be sold to the Customers in April.

Cash basis accounting you only do journal entries when cash is received or spent.

In Accrual basis accounting all your listed transactions require journal entries.