Exercise 2- Accrual vs. cash accounting: Sabon Corporation sells beauty products. The company's fiscal year ends on December 31. The following transactions occurred in 2017 a. Purehased $385,000 of soaps from its supplier. Paid $220,000 in cash and owed the rest on account. b. Paid S164,000 in wages to employees for work perfomed in 2017. In addition, $14,000 of wages for work performed in 2016 were paid in January 2017, and $23,000 of wages for work performed in December 2017 will be paid in January 2018 Sold $770,000 of soaps in 2017. One-fourth of the amount was paid in cash and the rest is owed to the company and will be paid in 2018. The cost of goods sold is $370,000 Paid S25,000 in cash for utilities expense in 2017 Sabon Corp. received a deposit from a customer at the amount of $89,000 in cash in December 2017. The actual sale will oceur in 2018 d. e. f. Sabon Inc. received a S350 utility bill for December 2017. The bill was paid in 2018 Required: Complete the following cash-based and acenual-based income statements Cash-basis inc ome statement Keven ues Cash sales Customer deposits Total revenues Expenses Inventory purchases Wages paid Utilities paid Total expenses: Net Loss Acc rual-basis income statement Keven ues Sales to customers Total revenues Expenses Cost of sales Wage expense Utilities expense Total expenses: Net Income