For sales adjustment, how do you get 2000 and 5000?

For purchase adjustment, where did the 5,000 amount come from?

For salaries adjustment, where did the $3,000 amount come from?

For supplies adjustment, where did the $2,000 come from?

In the balance sheet, how is accumulated depreciation $12,000

I would appreciate a step-by-step explanation on how to arrive at the correct calculations for the income statement and balance sheet.

Im also not exactly clear as in the purpose of converting from cash to accrual. Can you explain?

Part IL. 35 points Alpha keeps its post-clog nts financial statements on a cash basis ring the year. At yearyend, it coaverts its boks to the acrual basis fo converting to accrual basis. Tou Alpha reported the following balances on its operation), Debit Credit Cash Accounts receivable Supplies Inventory Equipment s 3,000 17,000 1,000 14,000 30,000 Accounts payable (for inventory) Salaries payable Unearned sales revenue Income tax payable Common stock Retained earnings S 6,000 19,000 9,000 4,000 3,000 16,000 $65,000 $65,000 At the end of 2018, Alpha again converted its books from cash basis to accrual basis, and preparod a balance shet statement on an accrual basis The following information was available as of December 31, 2018 Cash receipts from customers S160,000 Oher information Alpha owed vendors (for inventory) Customers owed Alpha Alpha owed employees Physical count of inventory Physical count of supplies Ending unearned sales revenue Income tax rate for 2018 $14,000 For supplies To vendors (for inventory) To employees To stockholders For other operating expenses (OE) For the 2017 taxes paid on March 15, 2018 (to satisfy the 2017 income tax liability-see 2017 trial balance) 12,000 6,000 10,000 3,000 2,000 2096 S 5,000 90,000 40,000 12,000 3,000 Alpha depreciates its equipment using the straight-line method over 5 years with no salvage value. Assume that the balance given for other operating expenses (OE) is the same for both cash and accrual. Alpha uses the periodic inventory system On the next page, prepare the income statement (use a MULTIPLE-STEP format) and balance sheet for 2018 on an accrual basis for Alpha. Failure to include a detailed and complete cost of goods sold section in the income statement will result in a loss of 10 points In your financial statement Cosh IGo,ooo L 3000 ies uPp Part II. Sales- $160,000+2,000-5,000 S157,000 Purchases $90,000-5,000 $85,000 Salaries Expense $40,000-3,000 $37,00 Cash (ending) $3,000+160,000-153,000 $10,000 Supplies Expense- $5,000-2,000-$3,000 Retained Earnings $8,000+8,000-3,000 $13,000 Alpha, Inc. Income Statement For the year ended December 31, 2018 [REMEMBER to include a detailed and complete formal section for cost of goods sold or you will lose points.] Sales S157,000 $14,000 85,000 $99,000 10.000 Beginning inventory Purchases Cost of goods available for sale Less: Ending inventory Cost of goods sold 89,000 Gross profit S 68,000 Operating expenses: Salaries expense Supplies expense Depreciation expense Other operating expenses Total operating expenses Income before income taxes Income tax expense Net income S37,000 3,000 6,000 S 10,000 2,000 S 8,000 Alpha, Inc. Balance Sheet December 31,2018 Cash Accounts receivable Supplies Inventory Equipment $10,000 12,000 3,000 10,000 $30,000 Less: Accumulated depreciation 12000 18.000 $53,000 Total assets Accounts payable Salaries payable S14,000 6,000 2,000 2.000 S24,000 Unearned sales revenue Income tax payable Total liabilities Common stock Retained earnings Total stockholders' equity $16,000 13,000 $29,000 Total liabilities and stockholders' equity S53,000