Question

Melody Instruments Company had the following transactions in March:______.

Sold instruments to customers for $16,300; received $11,900 in cash and the rest on account. The cost of the instruments was $7,700. Purchased $3,600 of new instruments inventory; paid $1,100 in cash and owed the rest on account. Paid $590 in wages to employees who worked during the month. Received $3,800 from customers as deposits on orders of new instruments to be sold to the customers in April. Received a $280 bill for March utilities that will be paid in April.
Complete the following statements: Cash Basis Income Statement Accrual Basis Income Statement Revenues Revenues Cash sales Customer deposits Sales to customers Expenses Expenses Inventory purchases Wages paid Cost of sales Wages expense Utlities expense Net income Net income

Answer 1

Answer and Explanation:

Cash basis income statement

Revenues

Cash sales $11,900

Customer deposit $3,800

Less: Expense

INventory purchase -$1,100

wages paid -$590

Net income $14,010

ANd,

Accrual basis income statement

Revenues $16,300

Sales to customers

Less: Expense

cost of sales -$7,700

wages expense -$590

utilities expense -$280

Net income $7,730