Solution-Prepare abbreviated income statements

Prepare abbreviated income statements

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Reference no: EM131809100

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.

Reference no: EM131809100

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Prepare abbreviated income statements

Reference no: EM131809100

Reference no: EM131809100

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