Question: Based on the following transactions calculate the revenues expenses and

Based on the following transactions, calculate the revenues, expenses and net income that would be reported
(a) On the cash basis
(b) On the accrual basis:
i. Credit sales to customers totalled $35,000.
ii. Cash sales totalled $115,000.
iii. Cash collections on account from customers totalled $30,000.
iv. Cost of goods sold during the period was $85,000.
v. Payments made to suppliers of inventory totalled $75,000.
vi. Wages of $32,500 were paid during the year. In addition, wages of $2,500 remained unpaid at year end; there were no wages unpaid at the beginning of the year.
vii. Halfway through the year, a one-year insurance policy was purchased at a cost of $1,000.

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