Reference no: EM132038499

The following data relate to Jones Company for the year ended December 31, 2009:

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.