Cash and Accrual Basis


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Cash and Accrual Basis 1 answer below » Cash and Accrual Basis) Wayne Rogers Corp. maintains its financial records on the cash basis of accounting. Interested in securing a long-term loan from its regular bank, Wayne Rogers Corp. requests you as its independent CPA to convert its cash-basis income statement data to the accrual basis. You are provided with the following summarized data covering 2013, 2014, and 2015. 2013 2014 2015 Cash receipts from sales: On 2013 sales $295,000 $160,000 $ 30,000 On 2014 sales ‘0’ 355,000 90,000 On 2015 sales 408,000 Cash payments for expenses: View complete question » Cash and Accrual Basis) Wayne Rogers Corp. maintains its financial records on the cash basis of accounting. Interested in securing a long-term loan from its regular bank, Wayne Rogers Corp. requests you as its independent CPA to convert its cash-basis income statement data to the accrual basis. You are provided with the following summarized data covering 2013, 2014, and 2015. 2013 2014 2015 Cash receipts from sales: On 2013 sales $295,000 $160,000 $ 30,000 On 2014 sales ‘0’ 355,000 90,000 On 2015 sales 408,000 Cash payments for expenses: On 2013 expenses 185,000 67,000 25,000 On 2014 expenses 40,000a 160,000 55,000 On 2015 expenses 45,000b 218,000 aPrepayments of 2014 expenses. bPrepayments of 2015 expenses Instructions (a) Using the data above, prepare abbreviated income statements for the years 2013 and 2014 on the cash basis. (b) Using the data View less » Dec 11 2013 02:42 AM

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