a. Sold music lessons to customers for $10,000; received $6,000 in cash and the rest on account. D. Paid $600 in wages for the month. c. Received a $200 bill for utilities that will be paid in April. d. Received $1,000 from customers as deposits on music lessons to be given in April. Required: Based on the information above, prepare a cash basis and an accrual basis income statement. Complete this question by entering your answers in the tabs below. Cash Basis Accrual Basis Based on the information above, prepare a cash basis income statement. Revenues MOSTERT MUSIC COMPANY Cash Basis Income Statement For the Month Ended March 31 Cash Sales Customer Deposits Total Revenues Expenses Salaries and Wages Paid Cash Income $ 6,000
a. Sold music lessons to customers for $10,000; received $6,000 in cash and the rest on account. D. Paid $600 in wages for the month. c. Received a $200 bill for utilities that will be paid in April. d. Received $1,000 from customers as deposits on music lessons to be given in April. Required: Based on the information above, prepare a cash basis and an accrual basis income statement. Complete this question by entering your answers in the tabs below. Cash Basis Accrual Basis Based on the information above, prepare a cash basis income statement. Revenues MOSTERT MUSIC COMPANY Cash Basis Income Statement For the Month Ended March 31 Cash Sales Customer Deposits Total Revenues Expenses Salaries and Wages Paid Cash Income $ 6,000
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:a. Sold music lessons to customers for $10,000; received $6,000 in cash and the rest on account.
b. Paid $600 in wages for the month.
c. Received a $200 bill for utilities that will be paid in April.
d. Received $1,000 from customers as deposits on music lessons to be given in April.
Required:
Based on the information above, prepare a cash basis and an accrual basis income statement.
Complete this question by entering your answers in the tabs below.
Cash Basis Accrual Basis
Based on the information above, prepare a cash basis income statement.
Revenues
MOSTERT MUSIC COMPANY
Cash Basis Income Statement
For the Month Ended March 31
Cash Sales
Customer Deposits
Total Revenues
Expenses
Salaries and Wages Paid
Cash Income
6,000
Cash Beals
Accrual Basis
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