Using the information above, prepare abbreviated income statements for the years 2021 and 2022 using the...
Fantastic news! We've Found the answer you've been seeking!
Question:
Transcribed Image Text:
Using the information above, prepare abbreviated income statements for the years 2021 and 2022 using the cash basis of accounting. Sales $ Expenses Net Income/(Loss) +A $ Blue Spruce Corp. Income Statement (Cash Basis) For the Year Ended December 31 2021 +A $ 2022 Using the information above, prepare abbreviated income statements for the years 2021 and 2022 using the accrual basis of accounting. Sales Expenses Blue Spruce Corp. Income Statement (Accrual Basis) For the Year Ended December 31 2021 Net Income/(Loss) +A $ +A 6A +A $ 2022 Blue Spruce Corp. maintains its financial records using the cash basis of accounting. Because it would like to secure a long-term loan from its bank, the company asks you, an independent CPA, to convert its cash basis income statement information to the accrual basis. You are provided with the following summarized data for 2021, 2022, and 2023: 2021 2022 2023 Cash receipts from sales: On 2021 sales $324,000 $162,000 $29,000 On 2022 sales -0- 332,000 87,000 On 2023 sales -0- -0- 387,600 Cash payments for expenses: On 2021 expenses 187,320 67,840 24,200 а On 2022 expenses 40,500 136,675 53,900 b On 2023 expenses -0- 44,600 216,000 a Prepayments of 2022 expense b Prepayments of 2023 expense Using the information above, prepare abbreviated income statements for the years 2021 and 2022 using the cash basis of accounting. Sales $ Expenses Net Income/(Loss) +A $ Blue Spruce Corp. Income Statement (Cash Basis) For the Year Ended December 31 2021 +A $ 2022 Using the information above, prepare abbreviated income statements for the years 2021 and 2022 using the accrual basis of accounting. Sales Expenses Blue Spruce Corp. Income Statement (Accrual Basis) For the Year Ended December 31 2021 Net Income/(Loss) +A $ +A 6A +A $ 2022 Blue Spruce Corp. maintains its financial records using the cash basis of accounting. Because it would like to secure a long-term loan from its bank, the company asks you, an independent CPA, to convert its cash basis income statement information to the accrual basis. You are provided with the following summarized data for 2021, 2022, and 2023: 2021 2022 2023 Cash receipts from sales: On 2021 sales $324,000 $162,000 $29,000 On 2022 sales -0- 332,000 87,000 On 2023 sales -0- -0- 387,600 Cash payments for expenses: On 2021 expenses 187,320 67,840 24,200 а On 2022 expenses 40,500 136,675 53,900 b On 2023 expenses -0- 44,600 216,000 a Prepayments of 2022 expense b Prepayments of 2023 expense
Expert Answer:
Answer rating: 100% (QA)
To convert the cash basis income statement information to the accrual basis for Blue ... View the full answer
Related Book For
Posted Date:
Students also viewed these accounting questions
-
Cash and Accrual Basis Nalezny Corp. maintains its financial records on the cash basis of accounting. Interested in securing a long-term loan from its regular bank, Nalezny Corp. requests you as its...
-
Imagine that a researcher develops a new cancer drug that shrinks tumors, which she measures using an MRI. The researcher needs to determine if the new drug performs differently from, or the same as,...
-
Mate Ease is an Internet dating service. All members pay in advance to be listed in the database. Advance payments are credited to an account entitled Unearned Member Dues. Adjusting entries are...
-
The leases in multiple-unit commercial developments commonly permit the landlord to allocate to the tenants various common area and general costs such as property taxes, janitorial services, security...
-
Estimate the overall odds ratio of the set of tables in Problem3.6 and test whether the odds ratios are the same across the tables. Problem3.6 is: 3.6 Use the DOS data to test whether there is gender...
-
The city of New Berlin is considering making several of its streets one-way. What is the maximum number of cars per hour that can travel from east to west? The network is shown inFigure. 2 5 0 0 2 2...
-
Discuss the following: a) b) c) The usefulness of models in managerial decision-making within firms. (5 marks) Process of theory formulation/model building (using an example of a theory/model known...
-
Evaluate administrative law under the previous and new constitutional dispensation in South Africa
-
Under Armour's Annual Report for the Fiscal year ended December 31st, 2019, indicates a net revenue of $5.3 billion for the company.
-
This week as Menifield described the importance of effectively communicating data, we learned the critical importance of how data is represented in presentations. As you learned, data can be...
-
solve the following lim I-9 7+37 27 15 is
-
Why are measure of location, commonly called measures of center, not sufficient in themselves to get a good picture of a data set? Support your answers with an example of a business application.
-
According to American School Search.com, HutchCC's current retention rate (that is, students who return to HutchCC) is 55%. The graduation rate is 33%. In your opinion, how could HutchCC improve...
-
Fitness Sneaker Company manufactures and sells sneakers. During each of the next six months, it forecasts the following demand (in pairs of sneakers): Month Demand 5 6 1 | 2 | 3 | 4 6000 5000 8000...
-
When a company has a contract involving multiple performance obligations, how must the company recognize revenue?
-
Preparation of a Corrected Statement of Financial Position Presented on the next page is the statement of financial position of Kishwaukee Corporation as of December 31. 2010. Note 1: Goodwill in the...
-
What is meant by general purpose financial statements?
-
The Z-score bankruptcy prediction model uses statement of financial position and income information to arrive at a Z-Score, which can he used to predict financial distress: EBIT is earnings before...
-
If 25 women are randomly selected, find the probability that the mean of their red blood cell counts is less than 4.444. Assume that red blood cell counts of women are normally distributed with a...
-
Find the probability of an IQ less than 85.
-
What percentage of women have red blood cell counts in the normal range from 4.2 to 5.4? Assume that red blood cell counts of women are normally distributed with a mean of 4.577 and a standard...
Study smarter with the SolutionInn App