Company A maintains its financial records on the cash basis of accounting. Company A is trying to see this financial information on accrual basis. You, have been asked to convert the financial information to accrual basis. You are provided with the following summarized data covering 2016, 2017, and 2018 by the firm.

		2016		2017		2018
Cash Receipts from Sales
On 2016 Sales		$370,000		$70,000		$25,000
On 2017 Sales		50,000		380,000		120,000
On 2018 Sales		10,000		80,000		550,000
Cash Payments for Expenses
On 2016 Expenses		120,000		35,000		6,000
On 2017 Expenses		21,000		160,000		33,000
On 2018 Expenses		10,000		32,000		148,000

QUESTIONS:

a. Using the data above, prepare abbreviated income statements for the years 2016 and 2017 on the accrual basis.

b. Using the data above, calculate the ending balances in Accounts Receivable, Prepaid Expense, Unearned Revenue and Accrued Expense as of December 31, 2016.