The following data relate to Jones Company for the year ended December 31, 2009:
|
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.