M3-2 (Algo) Reporting Cash Basis versus Accrual Basis Income LO3-3 Skidmore Music Company had the following transactions in March: a. Sold instruments to customers for $15,400; received $10,500 in cash and the rest on account. The cost of the instruments was $7,200. b. Purchased $3,300 of new instruments inventory; paid $1,400 in cash and owed the rest on account. c. Paid $730 in wages to employees who worked during the month. d. Received $3,000 from customers as deposits on orders of new instruments to be sold to the customers in April. e. Received a $250 bill for March utilities that will be paid in April. Complete the following statements: Accrual Basis Income Statement Revenues Sales to customers Cash Basis Income Statement Revenues Cash sales Customer deposits Expenses Inventory purchases Wages paid Expenses Cost of sales Wages expense Utilities expense Net income Net income