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const2013 [10]
3 years ago
15

Melody's Piano School operations for the month of May are summarized in the following three transactions: - Provided $1,150 of i

nstruction to students. - Of the $1,150 of instruction provided in May, $900 is collected in cash, and an additional $675 is collected for lessons provided in April. - Paid April’s piano rental bill of $500. Received May’s bill of $550 but did not pay. What is Melody's Net Income for May using the cash basis of accounting?
Business
1 answer:
Eddi Din [679]3 years ago
3 0

Answer:

Melody's net income for may is $ 1,075.

Explanation:

New income in cash basis = collection from instruction - piano rental bill

                                            = $ 1,575 - $ 500

                                            = $ 1,075

Therefore, Melody's net income for may is $ 1,075.

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