Cash and Accrual Basis Nalezny Corp. maintains its financial records on the cash basis of accounting. Interested in securing a long-term loan from its regular bank, Nalezny 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 2009, 2010, and 2011.

Instructions
(a) Using the data above, prepare abbreviated income statements for the years 2009 and 2010 on the cash basis.
(b) Using the data above, prepare abbreviated income statements for the years 2009 and 2010 on the accrualbasis.

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2009 2010 2011 Cash receipts trom sales: On 2009 sales On 2010 sales On 2011 sales Cash payments for expenses: On 2009 expenses On 2010 On 2011 expenses "Prepayments of 2010 expenses. S290,000 -0- $30,000 $160,000 90.000 1a5,000 25,000 170,000 45,000 55,000 218,000 "Prepayments of 2011