Mostert Music Company had the following transactions in March: a. Sold music lessons to customers for $13,950; received $9,350 in cash and the rest on acco b. Paid $660 in wages for the month. c. Received a $400 bill for utilities that will be paid in April. d. Received $2,450 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.

Mostert Music Company had the following transactions in March: a. Sold music lessons to customers for $13,950; received $9,350 in cash and the rest on acco b. Paid $660 in wages for the month. c. Received a $400 bill for utilities that will be paid in April. d. Received $2,450 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.

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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