Exercise 3 Accrual vs. cash accounting: Taos Corporation sells beauty products. The company's fiscal year ends on December 31. The following transactions occurred in 2019 (assume no income taxes are incurred): a. Purchased $470,000 of soaps from its supplier on account. b. Paid $61,000 in wages to employees for work performed in 2019. In addition, $94,000 of wages for work performed in 2018 were paid in January 2019, and $7,000 of wages for work performed in December 2019 will be paid in January 2020. Paid $24,000 on May1, 2019 for an insurance plan that lasts 2 years. d. Sold $591,000 of soaps in 2019. One-third of the amount was paid in cash and the rest is owed to the company and will be paid in 2020. The cost of goods sold is $330,000./ Received a $350 utility bill for December 2019. The bill was paid in 2020. c. e. Required: Complete the following cash-based and accrual-based (single-step) income statements. Cash-basis income statement Revenues Cash sales Total revenues Expenses Wages paid Insurance paid Total expenses: Net Loss Accrual-basis income statement Revenues Sales to customers Total revenues Expenses Cost of sales Wage expense Utilities expense Insurance expense Total expenses: Net Income