Determine income on an accrual basis

Reference no: EM131001970

The following data relate to Jones Company for the year ended December 31, 2007:

Sales on credit	$80,000
Cost of inventory sold on credit	65,000
Collections from customers	60,000
Purchase of inventory on credit	50,000
Payment for purchases	55,000
Cash collections for common stock	30,000
Dividends paid	10,000
Payment to salesclerk	10,000

Required:

a. Determine income on an accrual basis.

b. Determine income on a cash basis.

Reference no: EM131001970

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