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    omsairam's Avatar
    omsairam Posts: 1, Reputation: 1
    New Member
     
    #1

    Apr 21, 2008, 08:34 PM
    Reporting cash basis versus accrual basis income
    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.
    cdavis3126's Avatar
    cdavis3126 Posts: 1, Reputation: 1
    New Member
     
    #2

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

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