Butler Corp. maintains its financial records on the cash basis of accounting. Interested in securing a long-term loan from its regular bank, Butler Corp. requests you to convert its cash-basis income statement data to the accrual basis. You are provided with the following summarized data covering 2018, 2019, and 2020.

a Prepayments of 2019 expenses.
b Prepayments of 2020 expenses.
Instructions
a. Using the data above, prepare abbreviated income statements for the years 2018 and 2019 on the cash basis.
b. Using the data above, prepare abbreviated income statements for the years 2018 and 2019 on the accrual basis.

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2019 2018 2020 Cash receipts from sales: On 2018 sales On 2019 sales On 2020 sales $290,000 $160,000 $ 30,000 90,000 -0- 355,000 408,000 Cash payments for expenses: On 2018 expenses 185,000 67,000 25,000 On 2019 expenses 40,000a 170,000 55,000 45,000 218,000 On 2020 expenses