Based on the following transactions, calculate the revenues and expenses 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.