REQUIRED:

The following data represents the summarized transactions of XYZ Trading for the year 20CY, its second year of operations. Cash sales Sales on accounts Collections from customers Sales returns & discounts Cash purchases Purchases on account Payment to creditors Rental collections P 750,000 4,500,000 4,300,000 80,000 450,000 3,000,000 2,700,000 140,000 Purchase return & discounts Salaries and wages paid Store and office supplies paid Other operating expenses paid Interest received Equipment purchased Interest paid Accounts receivable written off P 60,000 1,050,000 300,000 100,000 60,000 600,000 50,000 10,000 Equipment was acquired at the beginning of its first year with a 10-year useful life. Additional Information at December 31, 20CY: Notes & A/c receivable, 12/31/CY P320,000 Notes & A/c payable, 12/31/CY P 540,000 Notes & A/c receivable, 12/31/PY 210,000 Notes & A/c payable, 13/31/PY 300,000 Accrued salarles payable 110,000 Accrued Interest payable 10,000 Unused Store & office supplies 75,000 Inventory, 12/31/CY 600,000 Accrued Interest receivable 15,000 Inventory, 12/13/PY 500,000 Unearned rent income 20,000 2. Statement of Comprehensive Income for the year ended December 31, 20CY under Cash basis of accounting. 3. Convert the Cash basis Income statement to Accrual basis of accounting. 4. Adjusting entries necessary to convert to Accrual basis