Question: Olga Industries keeps records under the cash basis of accounting

Olga Industries keeps records under the cash basis of accounting rather than the accrual basis. Olga's 2012 income statement and additional data from 2011 and 2012 are as follows:
All accrued revenues and expenses as of 12/31/11 were collected and paid, respectively, in 2012. All deferred revenues and expenses as of 12/31/11 were earned and used, respectively, in 2012.
Required
Convert revenues and expenses from the cash basis to the accrual basis and recalculate income. Briefly explain why each adjustment is made.

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  • CreatedJuly 16, 2015
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