Mostert Music Company
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Reporting Cash Basis versus Accrual Basis Income: LO1, LO2
Mostert Music Company had the following transactions in March:
a. 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.
b. Purchased $4,000 of new instruments inventory; paid $1,000 in cash and owed the rest on account.
c. Paid $600 in wages for the month.
d. Received a $200 bill for utilities that will be paid in April.
e. 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
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This solution is comprised of a detailed explanation to complete cash basis and accrual basis income statement.
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Reporting Cash Basis versus Accrual Basis Income: LO1, LO2
Mostert Music Company had the following transactions in March:
a. Sold instruments to customers for $10,000; received $6,000 in cash and the rest on account. The cost of the instruments was ...
Purchase this Solution
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