Exercise 3-19 (Part Level Submission)

Kingbird Corp. maintains its financial records on the cash basis of accounting. Interested in securing a long-term loan from its regular bank, Kingbird 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 2016, 2017, and 2018.

2016 2017 2018 Cash receipts from sales: On 2016 sales $279,330 $172,620 $27,710 On 2017 sales 0 384,420 84,570 On 2018 sales 417,080 Cash payments for expenses: On 2016 expenses 190,150 71,300 22,550 On 2017 expenses 36,140 a 162,710 59,250 On 2018 expenses 49,340 b 212,270

aPrepayments of 2017 expenses. bPrepayments of 2018 expenses.

[Collapse question part]

(a)

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