M3-2 Reporting Cash Basis versus Accrual Basis Income LO3-3 Skidmore Music Company had the following transactions in March: a. Sold instruments to customers for $15,800; received $10,400 in cash and the rest on account. The cost of the instruments was $7,200 b. Purchased $3,600 of new instruments inventory; paid $1,600 in cash and owed the rest on account. c. Paid $730 in wages to employees who worked during the month. d. Received $3.900 from customers as deposits on orders of new instruments to be sold to the customers in April. e. Received a $110 bill for March utilities that will be paid in April. Complete the following statements: Cash Basis Income Statement Accrual Basis Income Statement Revenues Revenues Cash sales Customer deposits Sales to customers Expenses Expenses Inventory purchases Wages paid Cost of sales Wages expense Utlities expense Net income Net income