Problem
Mostert Music Company had the following transactions in March:
a. Sold music lessons to customers for $10,600; received $6,200 in cash and the rest on account.
b. Paid $640 in wages for the month.
c. Received a $320 bill for utilities that will be paid in April.
d. Received $2,150 from customers as deposits on music lessons to be given in April. 1.
Based on the information above, prepare a cash basis and an accrual basis income statement.