he following information pertains to Baron Flowers, a calendar year sole proprietorship, which maintained its books on the cash basis during the year Baron has developed plans to expand into the wholesale flower market and is in the process of negotiating a bank loan to finance the expansion The bank is reuesting year 4 financial statements prepared on the accrual basis of accounting from Baron During the course of a review engagement, Muir, Baron's accountant, obtained the following additional information Amounts due from customers totaled $32,000 at December 31, year 4 An analysis of the receivables in item 1 revealed that an allowance for uncollectible accounts of $3,800 should be provided Unpaid invoices for flower purchases totaled $30,500 and $17,000, at December 31, year 4, and December 31, year 3, respectively The inventory totaled $72,800 based on a physical count of the goods at December 31 The inventory was priced at cost, which approximates market value On May 1, year 4, Baron paid $8,700 to renew its comprehensive insurance coverage for one year The premium on the previous policy, which expires on April 30, year 4, was $7,800 On January 2, year 4, Baron entered into a 25 year operating lease for the vacant lot adjacent to Baron's retail store for use as a parking lot As agreed in the lease, Baron paved and fenced in the lot at a cost of $45,000 The improvements were completed on April 1, year 4, and have an estimated useful life of fifteen years No provision for depreciation or amortization has been recorded Depreciation on furniture and fixtures was $12,000 for year 4 Accrued expenses at December 31, year 3 and year 4, were as follows Year 3 Year 4 Utilities $ 900 $ 1,500 Payroll taxes 1,100 1,600 $ 2,000 $ 3,100 Baron is being sued for $400,000 Coverage under the comprehensive insurance policy is limited to $250,000 Baron's attorney believes that an unfavorable outcome is probable and that a reasonable settlement estimate is $300,000 The salaries account includes $4,000 per month paid to the proprietor Baron also receives $250 per week for living expenses Using this table, prepare the adjustments necessary to convert the trial balance of Baron Flowers to the accrual basis of accounting for the year ended December 31, year 4 Formal journal entries are not reuired to support your adjustments Enter all amounts as positive values rounded to the nearest whole dollar Cash Basis Adjustments Accrual Basis Account Title Debit Credit Debit Credit Debit Credit Cash 25,600 Accounts receivable, 12 31 Year 3 16,200 1 Inventory, 12 31 Year 3 62,000 2 Furniture fixtures 118,200 Land improvements 45,000 Accumulated depreciation amortization, 12 31 Year 3 32,400 3 Accounts payable, 12 31 Year 3 17,000 4 Baron, Drawings 5 Baron, Capital, 12 31 Year 3 124,600 6 7 Allowance for uncollectible accounts 8 Prepaid Insurance 9 Accrued Expenses 10 Estimated liability from lawsuit 11 Sales 653,000 12 Purchases 305,100 13 Salaries 174,000 14 Payroll taxes 12,400 15 Insurance 8,700 16 Rent 34,200 Utilities 12,600 17 Living expenses 13,000 18 Uncollectible Account 19 Income summary inventory 20 21 Depreciation and amortization 22 Estimated loss from lawsuit 23 $827,000 $827,000 24 25 Completion of these columns is not reuired but may be useful in checking your work Note Please enter your responses below Find a way to make them correspond with the number within the table and separate them with semicolons Use the following examples for 1 , 2 , and 3 as a reference for formulating your responses Example A (1)555,000 (2)90,555 (3)1,234 Example B 1 555,000 2 90,555 3 1,234 Example C 1 555,000 2 90,555 3 1,234 Be sure that your answers are clear to your Instructor with whichever method you choose

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he following information pertains to Baron Flowers, a calendar-year sole proprietorship, which maintained its books on the cash basis during the year. Baron has developed

he following information pertains to Baron Flowers, a calendar-year sole proprietorship, which maintained its books on the cash basis during the year. Baron has developed plans to expand into the wholesale flower market and is in the process of negotiating a bank loan to finance the expansion. The bank is reuesting year 4 financial statements prepared on the accrual basis of accounting from Baron. During the course of a review engagement, Muir, Baron's accountant, obtained the following additional information.

Amounts due from customers totaled $32,000 at December 31, year 4.
An analysis of the receivables in item 1 revealed that an allowance for uncollectible accounts of $3,800 should be provided.
Unpaid invoices for flower purchases totaled $30,500 and $17,000, at December 31, year 4, and December 31, year 3, respectively.
The inventory totaled $72,800 based on a physical count of the goods at December 31. The inventory was priced at cost, which approximates market value.
On May 1, year 4, Baron paid $8,700 to renew its comprehensive insurance coverage for one year. The premium on the previous policy, which expires on April 30, year 4, was $7,800.
On January 2, year 4, Baron entered into a 25-year operating lease for the vacant lot adjacent to Baron's retail store for use as a parking lot. As agreed in the lease, Baron paved and fenced in the lot at a cost of $45,000. The improvements were completed on April 1, year 4, and have an estimated useful life of fifteen years. No provision for depreciation or amortization has been recorded. Depreciation on furniture and fixtures was $12,000 for year 4.
Accrued expenses at December 31, year 3 and year 4, were as follows:

Year 3

Year 4

Utilities

$ 900

$ 1,500

Payroll taxes

1,100

1,600

$ 2,000

$ 3,100
Baron is being sued for $400,000. Coverage under the comprehensive insurance policy is limited to $250,000. Baron's attorney believes that an unfavorable outcome is probable and that a reasonable settlement estimate is $300,000.
The salaries account includes $4,000 per month paid to the proprietor. Baron also receives $250 per week for living expenses.

Using this table, prepare the adjustments necessary to convert the trial balance of Baron Flowers to the accrual basis of accounting for the year ended December 31, year 4. Formal journal entries are not reuired to support your adjustments. Enter all amounts as positive values rounded to the nearest whole dollar.

	Cash Basis		Adjustments		Accrual Basis*
Account Title	Debit	Credit	Debit	Credit	Debit*	Credit*
Cash	25,600				*____
Accounts receivable, 12/31 Year 3	16,200		[1____]		*____
Inventory, 12/31 Year 3	62,000		[2____]		*____
Furniture & fixtures	118,200				*____
Land improvements	45,000				*____
Accumulated depreciation & amortization, 12/31 Year 3		32,400		[3____]		*____
Accounts payable, 12/31 Year 3		17,000		[4____]		*____
Baron, Drawings			[5____]		*____
Baron, Capital, 12/31 Year 3		124,600	[6____]	[7____]		*____
Allowance for uncollectible accounts				[8____]		*____
Prepaid Insurance			[9____]		*____
Accrued Expenses				[10___]		*____
Estimated liability from lawsuit				[11___]		*____
Sales		653,000		[12___]		*____
Purchases	305,100		[13___]		*____
Salaries	174,000			[14___]	*____
Payroll taxes	12,400		[15___]		*____
Insurance	8,700			[16___]	*____
Rent	34,200				*____
Utilities	12,600		[17___]		*____
Living expenses	13,000			[18___]
Uncollectible Account			[19___]		*____
Income summary inventory			[20___]	[21___]		*____
Depreciation and amortization			[22___]		*____
Estimated loss from lawsuit			[23___]		*____
	$827,000	$827,000	[24____]	[25___]	*____	*____
* Completion of these columns is not reuired but may be useful in checking your work.

Note: Please enter your responses below. Find a way to make them correspond with the number within the table and separate them with semicolons. Use the following examples for [1____], [2____], and [3____] as a reference for formulating your responses: Example A: (1)555,000; (2)90,555; (3)1,234; Example B: 1--555,000; 2--90,555; 3--1,234; Example C: 1 = 555,000; 2 = 90,555; 3 = 1,234; Be sure that your answers are clear to your Instructor with whichever method you choose.