Reporting Cash Basis versus Accrual Basis Income Skidmore Music Company had the following transactions in March: a.
Question:
Skidmore Music Company had the following transactions in March:
a. Sold instruments to customers for $15,000; received $10,000 in cash and the rest on account. The cost of the instruments was $9,000.
b. Purchased $3,000 of new instruments inventory; paid $1,000 in cash and owed the rest on account.
c. Paid $750 in wages for the month.
d. Received $3,000 from customers as deposits on orders of new instruments to be sold to the customers in April.
e. Received a $200 bill for March utilities that will be paid in April. Complete the followingstatements:
Transcribed Image Text:
Accrual Basis Income Statement Cash Basis Income Statement Revenues Cash sales Customer deposits Expenses İnventory purchases Wages paid Revenues Sales to customers Expenses Cost of sales Wages expense Utilities expense Net income Net income
Fantastic news! We've Found the answer you've been seeking!
Step by Step Answer:
Answer rating: 66% (18 reviews)
Cash Basis Income Statement Accrual Basis Income Statement Rev...View the full answer
Answered By
Aysha Ali
my name is ayesha ali. i have done my matriculation in science topics with a+ . then i got admission in the field of computer science and technology in punjab college, lahore. i have passed my final examination of college with a+ also. after that, i got admission in the biggest university of pakistan which is university of the punjab. i am studying business and information technology in my university. i always stand first in my class. i am very brilliant client. my experts always appreciate my work. my projects are very popular in my university because i always complete my work with extreme devotion. i have a great knowledge about all major science topics. science topics always remain my favorite topics. i am also a home expert. i teach many clients at my home ranging from pre-school level to university level. my clients always show excellent result. i am expert in writing essays, reports, speeches, researches and all type of projects. i also have a vast knowledge about business, marketing, cost accounting and finance. i am also expert in making presentations on powerpoint and microsoft word. if you need any sort of help in any topic, please dont hesitate to consult with me. i will provide you the best work at a very reasonable price. i am quality oriented and i have 5 year experience in the following field.
matriculation in science topics; inter in computer science; bachelors in business and information technology
_embed src=http://www.clocklink.com/clocks/0018-orange.swf?timezone=usa_albany& width=200 height=200 wmode=transparent type=application/x-shockwave-flash_
4.40+
11+ Reviews
14+ Question Solved
Related Book For
Question Posted:
Students also viewed these Accounting questions
-
Mostert Music Company had the following transactions in March a. Sold instruments to customers for $10,000; rec'd $6,000 in cash and the rest on account, cost of the instrument was $7,000 b....
-
Reporting Cash Basis versus Accrual Basis Income Payson Sports, Inc., sells sports equipment to customers. Its fiscal year ends on December 31. The following transactions occurred in 2012: a....
-
Mostert Music Company had the following transactions in March: a. Sold instruments to customers for $ 15,000; received $ 10,000 in cash and the rest on account. b. Determined that the cost of the...
-
Pipestone Ltd. (Pipestone) uses an aging schedule to estimate the amount of receivables that won't be collected. Pipestone allows its customers up to 60 days to pay amounts owed. Any receivable...
-
Singh Distributing Company, which uses the periodic inventory system, engaged in the following transactions during May of the current year: May 3 Purchased office supplies for cash, $22,000. 7...
-
What is statistical process control?
-
The current advertising campaign for a major soft-drink brand would be changed if less than 30 percent of the consumers like it. a. Formulate the null and alternative hypotheses. b. Discuss the type...
-
John R. lane (SSN 111-44-6666) lives at 1010 Ispen street, Yorba Linda, California 90102. John, a single taxpayer, age 66 provided 100% of his cousin's support. the cousin lives in Arizona. he wants...
-
How will the Dodd-Frank Act affect value of structured instruments to both originator and issuer? Would it affect their usefulness as a source of financing and diversification/transfer of credit...
-
Vera Bradley, Inc. (VRA) is a leading designer, producer, and retailer of fashion handbags, accessories, and travel items for women. Income statements for two recent years for Vera Bradley are as...
-
Matching Definitions with Terms Match each definition with its related term by entering the appropriate letter in the space provided. There should be only one definition per term (that is, there are...
-
Identifying Revenues The following transactions are July 2011 activities of Craigs Bowling, Inc., which operates several bowling centers (for games and equipment sales). If revenue is to be...
-
In Chap. 9 (Example 915), we generated an exact solution of the NavierStokes equation for fully developed Couette flow between two horizontal flat plates (Fig. P1012), with gravity acting in the...
-
Sales representative DeMarino realized that the investment of his time and effort was not for short-term gain, but instead looked to the ___________ the hospital would bring to Medtronic. A....
-
Volunteer, Inc. offers an unconditional return policy to its customers. During the current period, the company records total sales of $850,000, with a cost of merchandise to Heller of $425,000. Based...
-
On adjusted trial balance of Cha Cha Company, the company reports the following information: Retained Earnings $10,300 Sales Revenue $8,000 and Service Revenue $1,250 Rent Expense $3,000, Salaries...
-
The transaction of Padilla Services are recorded in the general journal below. Accounting Transactions Date Account Titles and Explanation Debit ($) Credit ($) Jan. 1 Cash 20,000 Notes Payable 20,000...
-
The term "cost" in health care can mean all of the following EXCEPT: A. The amount paid for a service B. The amount a patient owes C. The amount paid on an invoice for a supply D. The amount paid to...
-
analyse the significance of the learning organisation and knowledge management to SHRD;
-
Global.asax is used for: a. declare application variables O b. all other answers are wrong O c. declare global variables O d. handle application events
-
Solve Problem. 5x 3 4 + x 2 x - 2 4 + 1
-
Rolling Hills Golf Inc. was organized on July 1, 2012. Quarterly financial statements are prepared. The trial balance and adjusted trial balance on September 30 are shown here. Instructions(a)...
-
A review of the ledger of Terrell Company at December 31, 2012, produces these data pertaining to the preparation of annual adjusting entries.1. Prepaid Insurance $15,200. The company has separate...
-
Open Road Travel Court was organized on July 1, 2011, by Tiffany Lampkins. Tiffany is a good manager but a poor accountant. From the trial balance prepared by a part-time bookkeeper, Tiffany prepared...
-
If a tax Bear has a vacation home, that is issues personally by the taxpayer for part of the year, and as a rental for part of the year, how are expenses reported on its tax return?
-
Christopher and Janai have a new grandson. How much money should they invest now so that he will have $78,000 for his college education in 18 years? The money is invested at 3.8% compounded...
-
Jonas' current annual salary is $70,000. Ten years from now how much will he need to earn to retain his present purchasing power if the rate of inflation over that period is 2% /year compounded...
Study smarter with the SolutionInn App