The following is a list of transactions for which you need to complete both an accrual and cash basis income statements for the months of August and September. You need to show your work as an income statement with all revenue and expense items listed.

Collected $1,500 from previous months sales on 9/8

Paid August Rent $1,500 on September 1^st

Sold 100 units which cost $75 for $150 each during the month of August

Purchased a delivery truck on September 1^st 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 9/28/2016

Received the August electric bill on 8/15/2016 $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 ($3,600) and paid first 6 months in advance $600