Chapter 3 Homework Assignm. Help Sove & Exit Submit eck my work mode : This show

Question

Chapter 3 Homework Assignm. Help Sove & Exit Submit eck my work mode : This shows what is correct or incorrect for the work you have completed so for. It does not indicate completion Return to question Mostert Music Company had the following transactions in March: . sold music lessons to customers for $12.950, received S7,650 in cesh and the rest on eccount b. Paid $1,000 in wages for the month. c. Received a $480 bill for utilities that will be paid in April. d Received $4,650 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 Prev 1 of 9Next ere to search

Explanation / Answer

Under Accrual basis income and expenses will consider when it is earned or incurred. and under cash basis income and expenses will consider when it is received or paid.

Income Statement under Accrual Basis

Income statement under Cash basis

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Sales revenue $ 12,950 Less: Expenses Wages $ 1,000 Utilities expenses $     480 Total expenses $    1,480 Net income $ 11,470

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