Question - The following data relate to Jones Company for the year ended December 31, 2011: Sales on credit $80,000 Cost of inventory sold on credit 65,000 Collections from customers 60,000 Purchase of inventory on credit 50,000 Payment for purchases 55,000 Cash collections for common stock 30,000 Dividends paid 10,000 Payment to salesclerk 10,000
Required -
a. Determine income on an accrual basis.
b. Determine income on a cash basis.
Gibson, Charles H.. Financial Reporting and Analysis (Page 30). Cengage Textbook. Kindle Edition.