Payson Sports, Inc., sells sports equipment to customers. Its fiscal year ends on December 31. The following transactions occurred in the current year a. Purchased $250,000 of new sports equipment inventory; paid $90,000 in cash and owed the rest on account. b. Paid employees $180,300 in wages for work during the year; an additional $3,700 for the current years wages will be paid in January of the next year c. Sold sports equipment to customers for $750,000; received $500,000 in cash and owed the rest on account. The cost of the equipment was $485,000 d. Paid $17,200 cash for utilities for the year. e. Received $70,000 from customers as deposits on orders of new winter sports equipment to be sold to the customers in January of the next year f. Received a $1,930 utilities bill for December of the current year that will be paid in January of the next year Required 1. Complete the following statements Cash Basis Income Statement Accrual Basis Income Statement Revenues Revenues Sales to customers Cash sales Customer deposits Expenses Inventory purchases Wages paid Utilities paid Cost of sales Wages expense Utilities expense Net Income Net income 2. Which basis of accounting (cash or accrual) provides more useful information to investors, creditors, and other users? O Cash basis Accrual basis