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Mostert Music Company had the following transaction in March:
a. Sold instruments to customers for $10,000; received $6,000 in cash and the rest on account. The cost of instruments was $7,000.
b. Purchased $4,000 of new instrument inventory; paid $1,000 in cash and owed the rest on account.
c. Paid $600 in wages for the month
d. Received a $200 bill for utilities that will be paid in April
e. Received a $1,000 from customers as deposits on orders of new instruments to be sold to the customers in April. Complete the following statements:
Cash basis Income Statement
Accrual basis Income Statement
Revenues:
Cash Sales
$
Sales to customers
Customer Deposits
Expenses:
Cost of sales
Inventory Purchases
Wages expense
Wages paid
Utility expense
Cash Income
Net Income
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