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Reporting cash basis versus accrual basis income

Asked Apr 21, 2008, 08:34 PM — 1 Answer
Please help me. I am an online student and new to accounting.

Forllowing transactions in March. Do both cash basis and accrual basis income

A) Sold instrument to customers for $10,000; received $6000 in cash and the rest on account. The cost of the instrument was $7000
B)Purchased $4000 of new instrument inventory;paid $1000 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 $1000 from customers as deposits on orders of new instruments to be sold to the customers in April

Cash basis I/S
Revenue
Cash sales
Customer deposit
Expense
Inventory purchase
Wages paid
Cash Income $

Accrual basis I/S
Sales to customers

Expense
Cost of sales
Wages expense
Utilities expense

Net Income $

Please help me. I am lost. Thank you for your kind help.

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cdavis3126 Posts: 1, Reputation: 1
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Sep 10, 2008, 11:07 AM
Mostert Muscia Company had the following tranactions in May
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