On January 1, 2025, Norma Smith and Grant Wood formed a computer sales and service company in Soapsville, Arkansas, by investing $90,480 cash. The new company, Arkansas Sales and Service, has the following transactions during January.

1. Pays $9,000 in advance for 3 months rent of office, showroom, and repair space.
2. Purchases 41 personal computers at a cost of $1,620 each, 7 graphics computers at a cost of $2,620 each, and 26 printers at a cost of $420 each, paying cash upon delivery.
3. Sales, repair, and office employees earn $13,080 in salaries and wages during January, of which $3,480 was still payable at the end of January.
4. Sells 31 personal computers at $2,670 each, 5 graphics computers for $3,720 each, and 16 printers for $620 each; $75,480 is received in cash in January, and $35,810 is sold on a deferred payment basis.
5. Other operating expenses of $8,880 are incurred and paid for during January; $2,480 of incurred expenses are payable at January 31.

Instructions

1. Using the transaction data above, prepare (1) a cash-basis income statement and (2) an accrual-basis income statement for the month of January.
2. Using the transaction data above, prepare (1) a cash-basis balance sheet and (2) an accrual-basis balance sheet as of January 31, 2025.