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    mamoosh's Avatar
    mamoosh Posts: 1, Reputation: 1
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    #1

    Apr 13, 2009, 01:00 PM
    Reporting Cash Basis versus Accrual Basis Income
    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 $
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    morgaine300 Posts: 6,561, Reputation: 276
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    #2

    Apr 13, 2009, 10:17 PM

    Please see the guidelines for posting homework questions. We are not here to do it for you:

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