Part IV: Cash Basis versus Accrual Basis (18 points) Joannie's Hardware Store just started in business. These transactions and events occurred during August and September 2018. Ignore income taxes Transaction (1) Issued common stock and received $225,000 in cash (2) Purchased inventory from various suppliers, on credit, with a cost of $100,000 (3) Made credit sales of $70,000. (4) Made cash sales of $50,000 (5) Determined that inventory costing $90,000 (6) Paid $75,000 in cash for inventory purchases from (2) (7) Paid salaries of $12,000 in cash (8) Paid rent of $7,000 August 2018 was sold on the store in cash. September 2018 Transaction (9) Purchased inventory; cost is $220,000; put $200,000 on credit and paid cash for the remaining balance. (10) Made credit sales of $90,000 Made cash sales of $75,000. (11) (12) Determined that inventory costing $110,000 sold was Collected $60,000 on accounts receivable (from (3) (13) Paid $25,000 in cash for inventory purchases (from (2) Paid $15,000 in cash for inventory purchases (from (9) Paid salaries of $16,000 in cash Paid rent of $8,000 on store in cash. (14) (15) (16) (17) Please prepare the accrual basis income statement and the cash basis operating statement for the month of September. (You do not have to do this for August). Use the format on the next page. Or, you can make up your own format in Word or in Excel Part IV-continued September 2018 Accrual Basis Sales Revenue Expenses (Please Identify and List) Net Income (Loss) September 2018 Accrual Basis Cash Receipts from Sales Cash Payments (Please Identify and List): Net Increase (Decrease) in Cash