Prepare an income statement for the month of August using the accrual basis. and Prepare an income statement for the month of August using the modified cash basis.

Collected fees $10 000 in August which includes $1 500 fees earned in July.
Earned $2 000 fees in August to be received in September.
Beginning supplies on hand in was $500 and further purchase of supplies in August amounted to $1,000. All supplies were bought on credit and supplies worth $600 still remains unused at the end.
Paid suppliers $800 cash in August which includes $200 for supplies bought in July.
Paid wages amounting to $2 000 which includes $300 earned in July. Another payment of $500 earned in August will be paid in September.
Bought office equipment worth $2 400 and paid $1 200 cash. The remaining balance will be paid in September. Equipment is estimated to have a useful life of 2 years after which it will become

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i ii Income Statement For the month of August Using Accrual basis RevenuesIncomes Fees collecte... View the full answer