On January 1, 2025, Norma Smith and Grant Wood formed a computer sales and service company in Soapsville, Arkansas, by investing $90,328 cash. The new company, Marigold Sales and Service, has the following transactions during January. 1. 2. 3. 4. 5. (a) - Pays $12,000 in advance for 3 months' rent of office, showroom, and repair space. Purchases 44 personal computers at a cost of $1,612 each, 10 graphics computers at a cost of $2,612 each, and 29 printers at a cost of $412 each, paying cash upon delivery. Sales, repair, and office employees earn $12,928 in salaries and wages during January, of which $3,328 was still payable at the end of January. Sells 34 personal computers at $2,662 each, 8 graphics computers for $3,712 each, and 19 printers for $612 each; $75,328 is received in cash in January, and $56,504 is sold on a deferred payment basis. Other operating expenses of $8,728 are incurred and paid for during January; $2,328 of incurred expenses are payable at January 31. Your answer is partially correct. (1) a cash-hasis income statement and (2) an accrual-basis income statement for the

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
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Chapter1: Financial Statements And Business Decisions
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On January 1, 2025, Norma Smith and Grant Wood formed a computer sales and service company in Soapsville, Arkansas, by investing
$90,328 cash. The new company, Marigold Sales and Service, has the following transactions during January.
1.
2.
3.
4.
5.
(a)
-
Pays $12,000 in advance for 3 months' rent of office, showroom, and repair space.
Purchases 44 personal computers at a cost of $1,612 each, 10 graphics computers at a cost of $2,612 each, and 29 printers at
a cost of $412 each, paying cash upon delivery.
Sales, repair, and office employees earn $12,928 in salaries and wages during January, of which $3,328 was still payable at the
end of January.
Sells 34 personal computers at $2,662 each, 8 graphics computers for $3,712 each, and 19 printers for $612 each; $75,328 is
received in cash in January, and $56,504 is sold on a deferred payment basis.
Other operating expenses of $8,728 are incurred and paid for during January; $2,328 of incurred expenses are payable at
January 31.
Your answer is partially correct.
Using the transaction data above, prepare (1) a cash-basis income statement and (2) an accrual-basis income statement for the
LAELL
Transcribed Image Text:On January 1, 2025, Norma Smith and Grant Wood formed a computer sales and service company in Soapsville, Arkansas, by investing $90,328 cash. The new company, Marigold Sales and Service, has the following transactions during January. 1. 2. 3. 4. 5. (a) - Pays $12,000 in advance for 3 months' rent of office, showroom, and repair space. Purchases 44 personal computers at a cost of $1,612 each, 10 graphics computers at a cost of $2,612 each, and 29 printers at a cost of $412 each, paying cash upon delivery. Sales, repair, and office employees earn $12,928 in salaries and wages during January, of which $3,328 was still payable at the end of January. Sells 34 personal computers at $2,662 each, 8 graphics computers for $3,712 each, and 19 printers for $612 each; $75,328 is received in cash in January, and $56,504 is sold on a deferred payment basis. Other operating expenses of $8,728 are incurred and paid for during January; $2,328 of incurred expenses are payable at January 31. Your answer is partially correct. Using the transaction data above, prepare (1) a cash-basis income statement and (2) an accrual-basis income statement for the LAELL
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