On January 1, 2025, Norma Smith and Grant Wood formed a computer sales and service company in Soapsville, Arkansas, by investing $91,848 cash. The new company, Splish Sales and Service, has the following transactions during January.

1.		Pays $15,000 in advance for 3 months rent of office, showroom, and repair space.
2.		Purchases 44 personal computers at a cost of $1,692 each, 10 graphics computers at a cost of $2,692 each, and 29 printers at a cost of $492 each, paying cash upon delivery.
3.		Sales, repair, and office employees earn $14,448 in salaries and wages during January, of which $4,848 was still payable at the end of January.
4.		Sells 34 personal computers at $2,742 each, 8 graphics computers for $3,792 each, and 19 printers for $692 each; $76,848 is received in cash in January, and $59,864 is sold on a deferred payment basis.
5.		Other operating expenses of $10,248 are incurred and paid for during January; $3,848 of incurred expenses are payable at January 31.

(a)

• Your Answer
• Correct Answer (Used)

Your answer is partially correct.

Using the transaction data above, prepare (1) a cash-basis income statement and (2) an accrual-basis income statement for the month of January. (Enter loss using either a negative sign preceding the number, e.g. -45 or parentheses e.g. (45).)

SPLISH SALES AND SERVICE Income Statement choose the accounting period For the Month Ended January 31, 2025For the Year Ended January 31, 2025January 31, 2025Incorrect answer
		(1) Cash Basis		(2) Accrual Basis
select an opening section name Cost of Computers & PrintersDividendsExpensesNet Income / (Loss)Other Operating ExpensesRentRetained Earnings, January 1Retained Earnings, January 31RevenuesSalaries and WagesTotal ExpensesTotal RevenuesCorrect answer		$enter a dollar amount Correct answer		$enter a dollar amount Correct answer
select an opening name for section one Cost of Computers & PrintersDividendsExpensesNet Income / (Loss)Other Operating ExpensesRentRetained Earnings, January 1Retained Earnings, January 31RevenuesSalaries and WagesTotal ExpensesTotal RevenuesCorrect answer
select an income statement item Cost of Computers & PrintersDividendsExpensesNet Income / (Loss)Other Operating ExpensesRentRetained Earnings, January 1Retained Earnings, January 31RevenuesSalaries and WagesTotal ExpensesTotal RevenuesCorrect answer		enter a dollar amountCorrect answer		enter a dollar amountCorrect answer
select an income statement item Cost of Computers & PrintersDividendsExpensesNet Income / (Loss)Other Operating ExpensesRentRetained Earnings, January 1Retained Earnings, January 31RevenuesSalaries and WagesTotal ExpensesTotal RevenuesCorrect answer		enter a dollar amountCorrect answer		enter a dollar amountCorrect answer
select an income statement item Cost of Computers & PrintersDividendsExpensesNet Income / (Loss)Other Operating ExpensesRentRetained Earnings, January 1Retained Earnings, January 31RevenuesSalaries and WagesTotal ExpensesTotal RevenuesCorrect answer		enter a dollar amountCorrect answer		enter a dollar amountCorrect answer
select an income statement item Cost of Computers & PrintersDividendsExpensesNet Income / (Loss)Other Operating ExpensesRentRetained Earnings, January 1Retained Earnings, January 31RevenuesSalaries and WagesTotal ExpensesTotal RevenuesCorrect answer		enter a dollar amountCorrect answer		enter a dollar amountCorrect answer
select a closing section name Cost of Computers & PrintersDividendsExpensesNet Income / (Loss)Other Operating ExpensesRentRetained Earnings, January 1Retained Earnings, January 31RevenuesSalaries and WagesTotal ExpensesTotal RevenuesCorrect answer		enter a total amount for this sectionCorrect answer		enter a total amount for this sectionCorrect answer
select a closing name for this statement Cost of Computers & PrintersDividendsExpensesNet Income / (Loss)Other Operating ExpensesRentRetained Earnings, January 1Retained Earnings, January 31RevenuesSalaries and WagesTotal ExpensesTotal RevenuesCorrect answer		$enter a total net income or loss amount Incorrect answer		$enter a total net income or loss amount Correct answer

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(b)

Using the transaction data above, prepare (1) a cash-basis balance sheet and (2) an accrual-basis balance sheet as of January 31, 2025. (List assets in order of liquidity.)

SPLISH SALES AND SERVICE Balance Sheet choose the accounting period For the Month Ended January 31, 2025For the Year Ended January 31, 2025January 31, 2025
		(1) Cash Basis		(2) Accrual Basis
Assets
enter a balance sheet item		$enter a dollar amount		$enter a dollar amount
enter a balance sheet item		enter a dollar amount		enter a dollar amount
enter a balance sheet item		enter a dollar amount		enter a dollar amount
enter a balance sheet item		enter a dollar amount		enter a dollar amount
select a closing section name for this part of the balance sheet Current AssetsCurrent LiabilitiesIntangible AssetsLong-term InvestmentsLong-term LiabilitiesNet Income / (Loss)Property, Plant, and EquipmentOwners EquityTotal AssetsTotal Current AssetsTotal Current LiabilitiesTotal Intangible AssetsTotal LiabilitiesTotal Liabilities and Owners EquityTotal Long-term InvestmentsTotal Long-term LiabilitiesTotal Owners EquityTotal Property, Plant, and Equipment		$enter a total amount for this part of the balance sheet		$enter a total amount for this part of the balance sheet
Liabilities and Owners Equity
enter a balance sheet item		$enter a dollar amount		$enter a dollar amount
enter a balance sheet item		enter a dollar amount		enter a dollar amount
enter a balance sheet item		enter a dollar amount		enter a dollar amount
select a closing name for this part of the balance sheet Current AssetsCurrent LiabilitiesIntangible AssetsLong-term InvestmentsLong-term LiabilitiesNet Income / (Loss)Property, Plant, and EquipmentOwners EquityTotal AssetsTotal Current AssetsTotal Current LiabilitiesTotal Intangible AssetsTotal LiabilitiesTotal Liabilities and Owners EquityTotal Long-term InvestmentsTotal Long-term LiabilitiesTotal Owners EquityTotal Property, Plant, and Equipment		$enter a total amount for this part of the balance sheet		$enter a total amount for this part of the balance sheet