Problem part level submission using the data above prepare


Problem: Part Level Submission

Sunland Corp. maintains its financial records on the cash basis of accounting. Interested in securing a long-term loan from its regular bank, Sunland 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 2016, 2017, and 2018.

 

2016

2017

2018

Cash receipts from sales:

 

 

 

On 2016 sales

$270,700

$168,230

$27,090

On 2017 sales

-0-

355,340

90,130

On 2018 sales

 

 

429,650

Cash payments for expenses:

 

 

 

On 2016 expenses

200,900

62,590

24,730

On 2017 expenses

42,600 a

145,100

54,980

On 2018 expenses

 

48,090 b

211,040

a. Prepayments of 2017 expenses.
b. Prepayments of 2018 expenses.

Using the data above, prepare abbreviated income statements for the years 2016 and 2017 on the accrual basis.

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Accounting Basics: Problem part level submission using the data above prepare
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