Wayne Rogers Corp. maintains its financial records on the cash basis of accounting. Interested in securing a long-term loan from its regular bank, Wayne Rogers 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 2019, 2020, and 2021.

Instructions

a. Using the data above, prepare abbreviated income statements for the years 2019 and 2020 on the cash basis.

b. Using the data above, prepare abbreviated income statements for the years 2019 and 2020 on the accrual basis.

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2020 2019 2021 Cash receipts from sales: On 2019 sales On 2020 sales On 2021 sales Cash payments for expenses: On 2019 expenses On 2020 expenses On 2021 expenses $ 30,000 $295,000 $160,000 -0- 355,000 90,000 408,000 185,000 40,000 25,000 67,000 160,000 55,000 45,000 218,000 "Prepayments of 2020 expenses. "Prepayments of 2021 expenses.