Requirements:

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$).$

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

$T-$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:

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

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$).$

Ramirez Consulting

Income Statement $($Cash Basis$)$

Year ended $\frac{12}{31}\frac{?}{25}$

Cash Receipts from Customers

Cash Payments

Salaries & Wages

Income Taxes

Insurance

Interest

Net Income

Additional Information

Accounts receivable

Salaries & wages payable

Income taxes payable

Prepaid insurance

Accumulated depreciation

Interest payable

No plant, property or equipment was sold this year.

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

For normal debit balance account:

Beginning Balance

Debits

Credits

$=$ Ending Balance

For normal credit balance account:

Beginning Balance

Credits

Debits

$=$ Ending Balance

Analysis $-3$ points

Asset and Contra Asset Accounts

Accounts receivable

Beg

Revenue

End

Uability Accounts

Ramirez Consulting

Income Statement $($Accrual Basis$)$

Year ended $12/31/25$

Revenue

Expenses

Net Income