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Part III: Accrual Basis versus Cash Basis Carbon Car Parts Store is a small store selling car parts and accessories. It just started in business. These transactions and events occurred during August and September 2018. Ignore income taxes. August 2018 Transaction (1) Issued common stock and received $225,000 in cash. (2) Purchased inventory from various suppliers, on credit (with accounts payable); cost is $100,000 (3) Made credit sales of $70,000 (with accounts receivable) (4) Made cash sales of $50,000. (5) Determined that inventory costing $90,000 (6) Paid $75,000 on inventory purehases from (2) (7) Paid salaries of $12,000 in cash (8) Paid rent of $7,000 on the store in cash sold was September 2018 (9) Purchased inventory; cost is $220,000; put $200,000 on credit and paid cash for the Transaction remaining balance. Made credit sales of $90,000 (with accounts receivable) Made cash sales of $65,000 Determined that inventory costing $1 10,000 Collected $60,000 on accounts receivable (from (3)). Paid $25,000 on inventory purchases (from (2)) Paid $15,000 on inventory purchases (from (9)) Paid salaries of$16,000 in cash Paid rent of $6,000 on store in cash (10) (11) (12) (13) (14) (15) (16) (17) sold was Please prepare the accrual basis income statement and the cash basis statement for the month of September. (You do not have to do this for August). Use the following format, or set up an Excel spreadsheet. Add additional lines if needed. September 2018 Accrual Basis Sales Revenue Expenses (Please Identify and List): Net Income Cash Basis September 2018 Cash Receipts from Sales Cash Payments (Please Identify and List): Net Increase (Decrease) in Cash

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