Question

Mostert Music Company had the following transactions in March: a. Sold music lessons to customers for $12,350; received $7,750 in cash and the rest on account. b. Paid $720 in wages for the month. c. Received a $260 bill for utilities that will be paid in April. d. Received $2,700 from customers as deposits on music lessons to be given in April. Based on the information above, prepare a cash basis and an accrual basis income statement. Complete this question by entering your answers in the tabs below. Cash Basis Accrual Basis Based on the information above, prepare a cash basis income statement. MOSTERT MUSIC COMPANY Cash Basis Income Statement At March 31 Revenues $ 10,450 X (720) X 0 X Cash Sales Customer Deposits Total Revenues Expenses Salaries and Wages Paid Cash Income (720) 9,730 $ < Cash Basis Accrual Basis >

Answer 1

Required 1 MOSTERT MUSIC COMPANY Cash Basis Income Statement For the Month Ended March 31 Revenues Sales $ Customer Deposits Total Revenues Expenses Salaries and Wages Paid Cash Income $ AA 7,750 2,700 10,450 (720) 9,730 Required 2 MOSTERT MUSIC COMPANY Accrual Basis Income Statement For the Month Ended March 31 Revenues Sales $ 12,350 Expenses Salaries and Wages Expense $ 720 Utilities Expense $ 260 Total Expenses (980) Net Income $ 11,370 Use negative figure if required please comment if you have any doubt Please give thumps up if you satisfied with the answer