The following is a list of transactions for which you need to complete both an accrual and cash basis income statement for the months of August and September. You need to show your work in an income statement format with all revenue and expense items listed. Yes, some transactions affect both cash and accrual. You should be creating FOUR separate reports... August Cash Report, September Cash Report, August Accrual Report, September Accrual Report.

Here is the data... Collected $1,500 from previous months sale on September 8th Paid August Rent $1,500 on September 1st Sold 100 units which cost $75 each, for $150 each during the month of August Purchased a delivery truck on September 1st for $30,000 and paid cash. It has a useful life of 5 years and we use straight line depreciation (written off equally over 60 periods) Paid employees for work performed in August on 8/31 $5,000 Collected $500 of accounts receivable from July sales on September 28th Received the August electric bill on 8/15 $450 and paid it on 9/25 $450 Paid for employee health insurance for August on 9/15 $3000 Received the July telephone bill on 8/15 and paid it on 9/15 $300 Sold AND Collected $500 worth of inventory on 8/31 Signed 3 year extended warranty contract for delivery truck on 9/1 (Total Contract Amount: $3,600) and paid first 6 months in advance $600