Prepare a cash basis and an accrual basis income statement

Assignment Help Financial Accounting

Reference no: EM13863581

Mostert Music Company had the following transactions in March:

a. Sold music lessons to customers for $14,350; received $8,950 in cash and the rest on account.

b. Paid $820 in wages for the month.

c. Received a $420 bill for utilities that will be paid in April.

d. Received $2,200 from customers as deposits on music lessons to be given in April.

1. Based on the information above, prepare a cash basis and an accrual basis income statement.

Reference no: EM13863581

Questions Cloud

Context diagram for an accounting information system : Need to draw a context diagram for an accounting information system, but not certain what to include for external entities and activities. The text says to include all entities and activities, but the example in the text book only includes a few on ..

Prepare appropriate the appropriate journal entry : As a long-term investment at the beginning of the fiscal year, Joey Co. purchased 30% of Legoria Supplies, Inc.’s 8 million shares for $56 Million. The fair value and book value of the shares were the same at that time. Prepare appropriate the approp..

Division to be based on the ratio of capital investments : Wallace and Simpson formed a partnership with Wallace contributing $92,000 and Simpson contributing $72,000. Their partnership agreement calls for the income (loss) division to be based on the ratio of capital investments. When the Income Summary is ..

Impact the income statement only the balance sheet : During the year 2013, the company had the following activities (note none of these activities should impact the income statement, only the balance sheet):

Prepare a cash basis and an accrual basis income statement : Mostert Music Company had the following transactions in March: Based on the information above, prepare a cash basis and an accrual basis income statement.

About accumulated other comprehensive income : Which of the following is true about Accumulated Other Comprehensive Income (AOCI)? (check all that apply)

What is the par value of its stock after the split : A company has 360,000 shares authorized, 200,000 shares issued, and 100,000 shares outstanding. The balance in its Common Stock account is $200,000. The company does a 2-for-1 stock split. What is the par value of its stock after the split?

How much cash will the company pay for dividends : A company has 360,000 shares authorized, 120,000 shares issued, and 80,000 shares outstanding. It declares cash dividends of $1 per share. How much cash will the company pay for dividends?

Prepare the journal entries to record the three transactions : Suppose you started up your own landscaping business. A costumer paid you $170 in advance to mow his or her lawn while he or she was on vacation. Prepare the journal entries to record the three transactions.

User Account

All Pages