Exercise 3-19 Nash Corp, maintains its financial records on the cash basis of ac
ID: 2337633 • Letter: E
Question
Exercise 3-19 Nash Corp, maintains its financial records on the cash basis of accounting, Interested in securing a long-term loan from its regular bank, Nash Corp, requests you as its independent CPA to convert its cash-basis income statement data to the accrual basis. You are provided with the following summarized data covering 2016, 2017, and 2018. 2016 20170 2018 Cash receipts from sales: On 2016 sales On 2017 sales On 2018 sales $294,570 $154,640 327,000 $31,880 93,550 399,140 Cash payments for expenses On 2016 expenses On 2017 expenses On 2018 expenses 168,090 24,210 57,370 48,730 b 210,040 61,480 43,130 166,850 Prepayments of 2017 expenses Prepayments of 2018 expenses. Your answer is partially correct. Try again. Using the data above, prepare abbreviated income statements for the years 2016 and 2017 on the cash basis. (Enter loss using either a negative sign preceding the number e.g. 45 or parentheses e.g. (45).) NASH CORP Income Statement (Cash Basis) For the Year Ended December 31 016 2017 Sales Revenue 294570 481 Expenses 211220 228330 Net Income (Loss) 833 25331 Your answer is partially correct. Try again. Using the data above, prepare abbreviated income statements for the years 2016 and 2017 on the accrual basis, (Enter loss using either a negative sign preceding the number e.g. -45 or parentheses e.g. (45).) NASH CORP Income Statement (Accrual Basis) For the Quarter Ended December 31, 2016 2017 Sales Revenue 294570 211220 228330 Net Income/(Loss) 83350 253310 Click if you would like to Show Work for this question: en Show WorkExplanation / Answer
Nash Corp.
Income statement (Cash basis)
For the year ended December 31
Nash Corp.
Income statement (Accrual basis)
For the year ended December 31
Working note:
Sales (2016) = 294,570 + 154,640 + 31,880
= $481,090
Sales (2017) = 327,000 + 93,550
= $420,550
Expenses (2016) = 168,090 + 61,480 + 24,210
= $253,780
Expenses (2017) = 43,130 + 166,850 + 57,370
= $267,350
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2016 2017 Sales 294,570 481,640 Expenses -211,220 -277,060 Net income 83,350 204,580Related Questions
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