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gtnhenbr [62]
3 years ago
8

Mostert Music Company had the following transactions in March: Sold music lessons to customers for $12,050; received $6,650 in c

ash and the rest on account. Paid $700 in wages for the month. Received a $330 bill for utilities that will be paid in April. Received $4,550 from customers as deposits on music lessons to be given in April. Based on the information above, prepare a cash basis and an accrual basis income statement.
Business
1 answer:
bezimeni [28]3 years ago
7 0

Answer:

Under Cash Basis all transactions for which cash is exchanged whether paid or received is accounted for.

Cash Basis Income Statement

Sales Revenue = $6,650

Customer Deposits = $4,550

Total Revenue = $11,200

Less: Expenses:

Wages              = ($700)

Net Income = $10,500

Under Accrual basis, the transactions are recorded as to the period they relate, and it is not necessary to exchange cash for the same.

Accrual Basis Income Statement

Sales Revenue = $12,050

Total Revenue = $12,050

Expenses

Wages = ($700)

Utilities = ($330)

Total Expenses = ($1,030)

Net Income = $11,020

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Answer:

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Explanation:

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Carillo Industries collected $108,000 from customers in 2017. Of the amount collected, $25,000 was for services performed in 201
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Answer and Explanation:

The computation is shown below;

But before reaching to the final answers, first do the following calculations

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Cash paid in 2017 $72,000

Add Expense incurred not yet paid for 2017 $42000

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b. Accrual basis  

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