I. ACCRUAL BASIS TO CASH BASIS: Determine the amount of cash paid (or received) for each of the following situations: A. Ending Amount Cash Paid Deferred expenses: (example: Prepaid Insurance) Beginning Amount 1. 2. 3. 1,000 4. 250 5. 1,000 Expense Recognized 5,000 5,000 5,000 5,000 5,000 750 750 250 B. Ending Amount Cash Paid Accrued Expenses: (example: Salaries Payable) Beginning Amount 1. 2. 3. 1,000 4. 250 5. 750 1,000 Expense Recognized 5,000 5,000 5,000 5,000 5,000 750 250 C. Ending Amount Cash Received Deferred Revenues: (example: Unearned Revenue) Beginning Amount 1. -O- 2. 3. 1,000 4. 250 5. 750 1,000 Revenue Recognized 5,000 5,000 5,000 5,000 5,000 750 250 D. Ending Amount Cash Received Accrued Revenues: (example: Interest Receivable) Beginning Amount 1. 2. -0- 3. 1,000 4. 250 5. 750 1,000 -0- 750 250 Expense Recognized 5,000 5,000 5,000 5,000 5,000 II. CASH BASIS TO ACCRUAL BASIS: A. Determine the amount to be expensed under the accrual basis of accounting given the amount of cash paid for the following situations: Deferred expenses: (example: Prepaid Insurance) Beginning Ending Cash Expense Amount Amount Paid Recognized 1. -0- 5,000 2. -0- 1,000 5,000 3. 1,000 5,000 4. 250 750 5,000 5. 250 5,000 750 B. Ending Amount Expense Recognized Accrued Expenses: (example: Salaries Payable) Beginning Amount 1. 2. 3. 1,000 4. 250 5. 750 1,000 Cash Paid 5,000 5,000 5,000 5,000 5,000 750 250 C. Ending Amount Expense Recognized Deferred Revenues: (example: Unearned Revenue) Beginning Amount 1. 2. 3. 1,000 4. 250 5. 750 1,000 Cash Paid 5,000 5,000 5,000 5,000 5,000 750 250 D. Ending Amount Expense Recognized Accrued Revenues: (example: Interest Receivable) Beginning Amount 1. -0- 2. 3. 1,000 4. 250 5. 750 1,000 Cash Paid 5,000 5,000 5,000 5,000 5,000 750 250