Tania Angus established Angus’ Phone App Productions in 2015 and kept her accounting records on a cash basis. During 2017, Tania decided to switch her accounting to the accrual basis and has asked you to help her convert the 2015 and 2016 financial statements to an accrual basis. Your analysis of the accounting records revealed the following data:

	2015		2016
Consulting fees revenue Cash collected for apps developed during the year Charged customers for apps developed during the year, but cash was not received until the following year Prepaid revenue collected in 2015 for apps developed in 2016 Expenses Cash paid for services received Accrued expenses at end of the year paid for in the following year Prepaid expenses: Cash paid during the year Amount prepaid at the end of the year	$	159 600 45 600 8 550 91 200 39 900 22 000 17 200		$	165 300 57 000 96 900 41 600 34 000 39 800

Required

A. Using the above data, complete abbreviated income statements in the form shown below for the years 2015 and 2016 for both the cash basis and accrual basis of accounting. Show supporting calculations in good form.

	Cash basis		Accrual basis
	2015	2016	2015	2016
Consulting fees revenue
Expenses	__________	_________	__________	__________
Profit	___________	__________	__________	__________

B. Show the differences that would result in the 31 December 2016 statement of financial position accounts from using the accrual basis as compared to the cash basis.