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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 $91,392 cash. The new company, Wildhorse Sales and Service, has the following transactions during January. 1. Pays $15,000 in advance for 3 months' rent of office, showroom, and repair space. Purchases 43 personal computers at a cost of $1,668 each, 9 graphics computers at a cost of $2,668 each, and 28 printers at a cost of $468 each, paying cash upon delivery. Sales, repair, and office employees earn $13,992 in salaries and wages during January, of which $4,392 was still payable at the end of January. Sells 33 personal computers at $2,718 each, 7 graphics computers for $3,768 each, and 18 printers for $668 each; $76,392 is received in cash in January, and $51,702 is sold on a deferred payment basis. Other operating expenses of $9,792 are incurred and paid for during January; $3,392 of incurred expenses are payable at January 31. 2. 3. 4. 5.

On January 1, 2025, Norma Smith and Grant Wood formed a computer sales and service company in Soapsville, Arkansas, by investing $91,392 cash. The new company, Wildhorse Sales and Service, has the following transactions during January. 1. Pays $15,000 in advance for 3 months' rent of office, showroom, and repair space. Purchases 43 personal computers at a cost of $1,668 each, 9 graphics computers at a cost of $2,668 each, and 28 printers at a cost of $468 each, paying cash upon delivery. Sales, repair, and office employees earn $13,992 in salaries and wages during January, of which $4,392 was still payable at the end of January. Sells 33 personal computers at $2,718 each, 7 graphics computers for $3,768 each, and 18 printers for $668 each; $76,392 is received in cash in January, and $51,702 is sold on a deferred payment basis. Other operating expenses of $9,792 are incurred and paid for during January; $3,392 of incurred expenses are payable at January 31. 2. 3. 4. 5.

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 stateme preceding the number, e.g. -45 or parentheses e.g. (45).) Revenues Expenses Rent Cost of Computers & Printers Salaries and Wages Other Operating Expenses Total Expenses Net Income /(Loss) WILDHORSE SALES AND SERVICE Income Statement For the Month Ended January 31, 2025 LA LA (1) Cash Basis 76392 15000 i 108840 9600 9792 143232 i 66840 LA LA (2) Accrual Basis 128094 5000 i 108840 13992 i 13184 i 141016 12922
Transcribed Image Text:Using the transaction data above, prepare (1) a cash-basis income statement and (2) an accrual-basis income stateme preceding the number, e.g. -45 or parentheses e.g. (45).) Revenues Expenses Rent Cost of Computers & Printers Salaries and Wages Other Operating Expenses Total Expenses Net Income /(Loss) WILDHORSE SALES AND SERVICE Income Statement For the Month Ended January 31, 2025 LA LA (1) Cash Basis 76392 15000 i 108840 9600 9792 143232 i 66840 LA LA (2) Accrual Basis 128094 5000 i 108840 13992 i 13184 i 141016 12922
On January 1, 2025, Norma Smith and Grant Wood formed a computer sales and service company in Soapsville, Arkansas, by investing $91,392 cash. The new company, Wildhorse Sales and Service, has the following transactions during January. 1. 2. 3. 5. Pays $15,000 in advance for 3 months' rent of office, showroom, and repair space. Purchases 43 personal computers at a cost of $1,668 each, 9 graphics computers at a cost of $2,668 each, and 28 printers at a cost of $468 each, paying cash upon delivery. Sales, repair, and office employees earn $13,992 in salaries and wages during January, of which $4,392 was still payable at the end of January. Sells 33 personal computers at $2,718 each, 7 graphics computers for $3,768 each, and 18 printers for $668 each; $76,392 is received in cash in January, and $51,702 is sold on a deferred payment basis. Other operating expenses of $9,792 are incurred and paid for during January; $3,392 of incurred expenses are payable at January 31.
Transcribed Image Text:On January 1, 2025, Norma Smith and Grant Wood formed a computer sales and service company in Soapsville, Arkansas, by investing $91,392 cash. The new company, Wildhorse Sales and Service, has the following transactions during January. 1. 2. 3. 5. Pays $15,000 in advance for 3 months' rent of office, showroom, and repair space. Purchases 43 personal computers at a cost of $1,668 each, 9 graphics computers at a cost of $2,668 each, and 28 printers at a cost of $468 each, paying cash upon delivery. Sales, repair, and office employees earn $13,992 in salaries and wages during January, of which $4,392 was still payable at the end of January. Sells 33 personal computers at $2,718 each, 7 graphics computers for $3,768 each, and 18 printers for $668 each; $76,392 is received in cash in January, and $51,702 is sold on a deferred payment basis. Other operating expenses of $9,792 are incurred and paid for during January; $3,392 of incurred expenses are payable at January 31.
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