Ask Question
24 November, 21:15

Skidmore Music Company had the following transactions in March:a. Sold instruments to customers for $16, 700, received $10, 700 in cash and the rest on account. The cost of the instruments was $7, 100. b. Purchased $4, 900 of new instruments inventory; paid $1, 700 in cash and owed the rest on account. c. Paid $720 in wages for the month. d. Received $3, 100 from customers as deposits on orders of new instruments to be sold to the customers in April. e. Received a $280 bill for March utilities that will be paid in April. Required:Complete the following statements:1. Cash basis Income Statement2. Accrual basis Income Statement

+5
Answers (1)
  1. 25 November, 00:06
    0
    Skidmore Music Company

    For the month March

    Cash basis Income Statement

    $

    Sales 13,800

    Cost of Goods Sold 1,700

    Gross Income 12,100

    Wages Expense (720)

    Operating Income 11,380

    Accrual basis Income Statement

    $

    Sales 16,700

    Cost of Goods Sold 4,900

    Gross Income 11,800

    Wages Expense (720)

    Utility Expense (280)

    Operating Income 10,800
Know the Answer?
Not Sure About the Answer?
Find an answer to your question ✅ “Skidmore Music Company had the following transactions in March:a. Sold instruments to customers for $16, 700, received $10, 700 in cash and ...” in 📘 Business if you're in doubt about the correctness of the answers or there's no answer, then try to use the smart search and find answers to the similar questions.
Search for Other Answers