Dr. Van Weigel (Fashion Mogul) manufacturers sandals and sells them to college bookstores. Given his popularity over the years he feels that he has created a trend of wearing sandals 365 days of the year. Although Dr. Weigel is a very intelligent man he has no idea how to construct an income statement. His accountants have asked him to provide income statements using both cash and accrual accounting for the months of July & August. The following is a list of transactions for which you need to complete both an accrual and cash basis income statements.

Sold 100 pairs of sandals which cost $20/pair for $40/pair in July

Collected $2,000 from previous months sales on 8/8/2106

Received the July telephone bill on 8/15/2016 $400

Paid July Rent $1,200 on August 1^st

Paid the annual computer maintenance contract fee for the year (Jan-Dec) on July 1, 2016 $1,500

Paid wages for July on 8/5/2016 $3,000

Paid Staples for office supplies used in July on 8/10/2016 $300

Collected $1,000 of accounts receivable on 7/28/2016 $1,000

Received a purchase discount by paying for sandals up front (2 moth supply) on 8/10/2016 $2,000

Paid the July electric bill on 8/16/2016 $400

Paid Dr. Al Socci for protection services (Mafia) for the month of July on 8/20/2016 $3,000 (when you wear sandals 365 days of the year you need protection)

Paid Tod Gilmore for July sales commission on 8/15/2016 $100