value: 10.00 points Mostert Music Company had the following transactions in Marc

Question

value: 10.00 points Mostert Music Company had the following transactions in March: a. Sold music lessons to customers for $12,950; received $7,650 in cash and the rest on account. 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. 1. Based on the information above, prepare a cash basis and an accrual basis income statement. MOSTERT MUSIC COMPANY Cash Basis Income Statement For the Month Ended March 31 MOSTERT MUSIC COMPANY Accrual Basis Income Statement For the Month Ended March 31 Revenues Sales Expenses Revenues 12,950 Sales Customer Deposits 12,950 4,650 17,600 Salaries and Wages Expense Utilities Expense 1,000 480 1,480 Total Revenues Expenses Salaries and Wages Paid Cash Income 1,000 16,600 Total Expenses Net Income w 11,470

Explanation / Answer

MOSTERT MUSIC COMPANY Cash basis income statement   Fore the month Ended march 31 Amount in $ Revenue      Sales                 7,650    Customer deposit                 4,650 Total revenue              12,300 Expenses      salaries and wages paid                 1,000 Cash income              11,300 MOSTERT MUSIC COMPANY Accrual basis income statement   Fore the month Ended march 31 Amount in $ Revenue      Sales              12,950 Expenses      salaries and wages paid                 1,000     Utilities Expenses                    480 Total expenses                 1,480 Net income              11,470

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