Based on the following transactions calculate the

revenues expenses and #138

Based on the following transactions, calculate the revenues, expenses, and net income that
would be reported on (a) The cash basis (b) The accrual basis:i. Inventory costing $70,000 was
purchased on account.ii. Inventory costing $60,000 was sold for $100,000. Eighty percent of the
sales were for cash.iii. Cash collected from credit customers (those who bought on account)
totalled $20,000.iv. A lease was signed at the beginning of the year, requiring monthly
payments of $1,000. The rent for the first month was paid when the lease was signed. After
that, the $1,000 rent was paid on the last day of each month, to cover the following month.v.
Supplies costing $5,500 were purchased for cash. At the end of the year, $500 of the supplies
were still unused.vi. Wages of $37,500 were paid during the year. Also, wages of $500
remained unpaid at year end.View Solution:
Based on the following transactions calculate the revenues expenses and

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