Mostert Music Company had the following transaction in March:
a. Sold instruments to customers for $10,000; received $6,000 in cash and the rest on account. The cost of instruments was $7,000.
b. Purchased $4,000 of new instrument 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 a $1,000 from customers as deposits on orders of new instruments to be sold to the customers in April. Complete the following statements:
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Cash basis Income Statement
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Accrual basis Income Statement
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Revenues:
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Revenues:
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Cash Sales
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$
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Sales to customers
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$
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Customer Deposits
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Expenses:
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Expenses:
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Cost of sales
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Inventory Purchases
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Wages expense
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Wages paid
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Utility expense
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Cash Income
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$
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Net Income
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$
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