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-   -   Cash Basis versus Accural Basis Income (https://www.askmehelpdesk.com/showthread.php?t=269466)

  • Oct 14, 2008, 07:24 PM
    johnpk1217
    Cash Basis versus Accural Basis Income
    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.
  • Jun 8, 2009, 09:21 PM
    dianazen
    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.
  • Jun 9, 2009, 09:03 PM
    pready

    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.

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