Requirements:

$1)$ Using the data below and T$-$accounts, convert the cash basis income statement to accrual basis in appropriate professional Excel format $($i$.$e$.,$ use cell referencing and formulas, no hard coding numbers$).$

$2)$ In the T$-$accounts and Income Statement, all account titles should be added using cell referencing. See the first T account for an example.

$3)$ T$-$accounts should have a beginning and ending balance, as well as a description of what transaction increases and decreases the account. See the first T$-$account for an example.

Grading: This assignment is grading on the following:

$1)$ Correct formatting of T$-$accounts including accounting title, beginning balance, ending balance, brief description of transaction that increases account, brief description of transaction that decreases account $(3$ points$)$

$2)$ Solution $-$ Income statement in good single step format $(4$ points$).$ Note the expenses may be in any order.

$3)$ Appropriate use of Excel $-$ Use of cell references for labels, account names and amounts if given in problem data and use of formulas for all calculations $(3$ points$).$

Data Analysis $-3$ points

Ramirez Consulting Asset and Contra Asset Accounts

Income Statement $($Cash Basis$)$ Accounts receivable

Year ended $12/31/25$ Beg Cash Rec'd

Revenue

Cash Receipts from Customers $ $410,000$ End

Cash Payments

Salaries & Wages $170,000$

Income Taxes $55,000$ Liability Accounts

Insurance $40,000$

Interest $35,000300,000$

Net Income $ $110,000$

Additional Information

Balances at $12/31$

$20252024$

Accounts receivable $ $50,000$ $ $30,000$

Salaries & wages payable $10,00020,000$

Income taxes payable $24,00019,000$ Solution $-4$ points

Prepaid insurance $6,0004,000$ Ramirez Consulting

Accumulated depreciation $95,00080,000$ Income Statement $($Accrual Basis$)$

Interest payable $3,0009,000$ Year ended $12/31/25$

No plant, property or equipment was sold this year. Revenue

Expenses

Hint: For T$-$accounts, you can solve for any one unknown

For normal debit balance account:

Beginning Balance

$+$ Debits

$-$ Credits

$=$ Ending Balance Net Income

For normal credit balance account:

Beginning Balance

$+$ Credits

$-$ Debits

$=$ Ending Balance

I need to be SHOWN how to do the calculations with all the numbers in the assignment. NO HARD CODING NUMBERS ARE ACCEPTED. Must all be done in Excel. PLEASE LOOK AT THE PHOTO ATTACHED TO HELP PROPERLY DO THE ASSIGNMENT.