Tania Angus established Anguss Phone App Productions in 2018 and kept her accounting records on a cash
Question:
Tania Angus established Angus’s Phone App Productions in 2018 and kept her accounting records on a cash basis. During 2018, Tania decided to switch her accounting to the accrual basis and has asked you to help her convert the 2018 and 2019 financial statements to an accrual basis. Your analysis of the accounting records revealed the following data.
Required
(a) Using the data, complete abbreviated income statements in the form shown below for the years 2018 and 2019 for both the cash basis and accrual basis of accounting. Show supporting calculations in good form.
(b) Show the differences that would result in the 31 December 2019 balance sheet accounts from using the accrual basis instead of the cash basis.
Step by Step Answer:
Financial Accounting
ISBN: 9780730363217
10th Edition
Authors: John Hoggett, John Medlin, Keryn Chalmers, Claire Beattie, Andreas Hellmann, Jodie Maxfield