Assignment task:
Based on the following transactions, calculate the revenues, expenses, net income that would be reported on the accrual basis: 1. Purchased inventory with a cost of $23,000 on account. 2. Sales on account to customers totaled $56,000. 3. Payments made to employees for wages totalled $18,000. 4. Cash collections from customers settling their accounts totalled $41,000. 5. Invoice received from the utility company for $3,800 is due in 30 days. 6. Payments totaling $19,000 were made to suppliers to settle part of the balance owing to them. 7. Received a deposit of $2,200 from a customer for goods to be delivered next month.