Mostert Music Company
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Mostert Music Company had the following transactions in March:
1. Sold instruments to customers for $10,000; received $6,000 in cash and the rest on account.
The cost of the instruments was $7,000.
2. Purchased $4,000 of new instruments inventory; paid $1,000 in cash and owed the rest on account.
3. Paid $600 in wages for the month.
4. Received a $200 bill for utilities that will be paid in April.
5. Received $1,000 from customers as deposits on orders of new instruments to be sold to the customers in April.
Complete the following statements:
Cash Basis Income Statement Accrual Basis Income Statement
Revenues: Revenues:
Cash Sales $ Sales to Customers $
Customer's deposits
Expenses: Expenses:
Inventory Purchases Costs of sales
Wages Paid Wages expense
Utilities Expense
Cash Income $ Net Income $
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Solution Summary
This solution is comprised of a detailed explanation to complete the cash basis and accrual basis income statements.
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Mostert Music Company had the following transactions in March:
1. Sold instruments to customers for $10,000; received $6,000 in cash and the rest on account.
The cost of the instruments was $7,000.
2. Purchased $4,000 of new instruments ...
Purchase this Solution
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