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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.

FINANCIAL ACCOUNTING
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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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
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.
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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