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

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Business

Joyce Clayton

27 December, 12:48

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

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Julian Gardner · Answer 1

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