On January 1, 2020, Norma Smith and Grant Wood formed a computer sales and service company in Soapsville, Arkansas, by investing $91,316 cash. The new company, Sheffield Sales and Service, has the following transactions during January. 1. 2. 3. 4. 5. Pays $12,000 in advance for 3 months' rent of office, showroom, and repair space. Purchases 42 personal computers at a cost of $1,664 each, 8 graphics computers at a cost of $2,664 each, and 27 printers at a cost of $464 each, paying cash upon delivery. Sales, repair, and office employees earn $13,916 in salaries and wages during January, of which $4,316 was still payable at the end of January. Sells 32 personal computers at $2,714 each, 6 graphics computers for $3,764 each, and 17 printers for $664 each; $76,316 is received in cash in January, and $44,404 is sold on a deferred payment basis. Other operating expenses of $9,716 are incurred and paid for during January; $3,316 of incurred expenses are payable at January 31.
On January 1, 2020, Norma Smith and Grant Wood formed a computer sales and service company in Soapsville, Arkansas, by investing $91,316 cash. The new company, Sheffield Sales and Service, has the following transactions during January. 1. 2. 3. 4. 5. Pays $12,000 in advance for 3 months' rent of office, showroom, and repair space. Purchases 42 personal computers at a cost of $1,664 each, 8 graphics computers at a cost of $2,664 each, and 27 printers at a cost of $464 each, paying cash upon delivery. Sales, repair, and office employees earn $13,916 in salaries and wages during January, of which $4,316 was still payable at the end of January. Sells 32 personal computers at $2,714 each, 6 graphics computers for $3,764 each, and 17 printers for $664 each; $76,316 is received in cash in January, and $44,404 is sold on a deferred payment basis. Other operating expenses of $9,716 are incurred and paid for during January; $3,316 of incurred expenses are payable at January 31.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Please do not give solution in image format thanku
![Using the transaction data above, prepare (1) a cash-basis income statement and (2) an accrual-basis income statemen
month of January. (Enter loss using either a negative sign preceding the number, e.g. -45 or parentheses e.g. (45).)
Revenues
Expenses
Cost of Computers and Printers
Salaries and Wages
Rent
Other Operating Expenses
Total Expenses
Net Income /(Loss)
SHEFFIELD SALES AND SERVICE
Income Statement
For the Month Ended January 31, 2020
(1) Cash Basis
76316
$
$
(2) Accrual Basis
120720](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F0ce123d7-ec28-4713-8995-d1c19687ec94%2Fe6ee8685-781a-43fa-b4ed-02086b94dce6%2F34s8ds8_processed.png&w=3840&q=75)
Transcribed Image Text:Using the transaction data above, prepare (1) a cash-basis income statement and (2) an accrual-basis income statemen
month of January. (Enter loss using either a negative sign preceding the number, e.g. -45 or parentheses e.g. (45).)
Revenues
Expenses
Cost of Computers and Printers
Salaries and Wages
Rent
Other Operating Expenses
Total Expenses
Net Income /(Loss)
SHEFFIELD SALES AND SERVICE
Income Statement
For the Month Ended January 31, 2020
(1) Cash Basis
76316
$
$
(2) Accrual Basis
120720
![On January 1, 2020, Norma Smith and Grant Wood formed a computer sales and service company in Soapsville, Arkansas, by investing
$91,316 cash. The new company, Sheffield Sales and Service, has the following transactions during January.
1.
2.
3.
4.
5.
Pays $12,000 in advance for 3 months' rent of office, showroom, and repair space.
Purchases 42 personal computers at a cost of $1,664 each, 8 graphics computers at a cost of $2,664 each, and 27 printers at a
cost of $464 each, paying cash upon delivery.
Sales, repair, and office employees earn $13,916 in salaries and wages during January, of which $4,316 was still payable at the
end of January.
Sells 32 personal computers at $2,714 each, 6 graphics computers for $3,764 each, and 17 printers for $664 each; $76,316 is
received in cash in January, and $44,404 is sold on a deferred payment basis.
Other operating expenses of $9,716 are incurred and paid for during January; $3,316 of incurred expenses are payable at
January 31.](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F0ce123d7-ec28-4713-8995-d1c19687ec94%2Fe6ee8685-781a-43fa-b4ed-02086b94dce6%2Fb8dr25b_processed.png&w=3840&q=75)
Transcribed Image Text:On January 1, 2020, Norma Smith and Grant Wood formed a computer sales and service company in Soapsville, Arkansas, by investing
$91,316 cash. The new company, Sheffield Sales and Service, has the following transactions during January.
1.
2.
3.
4.
5.
Pays $12,000 in advance for 3 months' rent of office, showroom, and repair space.
Purchases 42 personal computers at a cost of $1,664 each, 8 graphics computers at a cost of $2,664 each, and 27 printers at a
cost of $464 each, paying cash upon delivery.
Sales, repair, and office employees earn $13,916 in salaries and wages during January, of which $4,316 was still payable at the
end of January.
Sells 32 personal computers at $2,714 each, 6 graphics computers for $3,764 each, and 17 printers for $664 each; $76,316 is
received in cash in January, and $44,404 is sold on a deferred payment basis.
Other operating expenses of $9,716 are incurred and paid for during January; $3,316 of incurred expenses are payable at
January 31.
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