Accrual basis Cash basis Cash receipts Cash payments $ 6,800 Debit Credit $ 50,000 Advertising expense Bank loan payable Dividends declared Equipment Income tax expense Insurance expense Inventory purchased Issue of common shares Rent expense Salaries expense Sales revenue Supplies on hand 11,000 $40,000 6,600 3,840 150,000 20,000 18,400 57,700 250,300 8,100 $302,440 $320,300