Question

Help Seve El Submit Check my work Payson Sports, Inc., sells sports equipment to customers. Its fiscal year ends on December 31. The following transactions occurred in the current year: 15 points burloo a. Purchased $250,000 of new sports equipment inventory, paid $90,000 in cash and owed the rest on account b. Pald employees $180,300 in wages for work during the year, an additional $3700 for the current year's wages will be paid in January of the next year. c. Sold sports equipment to customers for $750,000, received $500,000 in cash with the customers owing the rest on account. The cost of the equipment was $485,000. d. Paid $17,200 cash for utilities for the year. e. Received $70,000 from customers as deposits on orders of new winter sports equipment to be sold to the customers in January of the next year. f. Received a $1,930 utilities bill for December of the current year that will be paid in January of the next year eBook Print References Required: 1. Complete the following statements: Cash Basis Income Statement Accrual Basis Income Statement Revenues Revenues Cash sales $ 500,000 Sales to customers Customer deposits Expenses Expenses 485,000 Inventory purchases Cost of sales 90,000 Wages paid 180,300 Wages expense Utilities paid 17,200 Utilities expense Net Income Net Income unuires more useful information to investors, creditors, and other users

Answer 1

Cash basis income statement		Accrual basis income statement
Revenue		Revenue
Cash sales	500000	Sales to customer	750000
Customer deposits	70000
Expenses		Expenses
Inventory purchase	90000	Cost of sales	485000
Wages paid	180300	Wages expense	184000
Utilities paid	17200	Utilities expense	19130
Net income	282500	Net income	61870