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Need help with this question and a little explanation to how it's done would be great. Thanks Salt Chill Ltd. uses cash basis accounting. Convert
Need help with this question and a little explanation to how it's done would be great. Thanks
Salt Chill Ltd. uses cash basis accounting. Convert its cash basis income statement to an accrual basis income statement. Here is the summarized data for 2016, 2017, and 2018. 2016 2017 2018 Cash receipts from sales: On 2016 sales On 2017 sales On 2018 sales $500,000 0 0 $128,000 $385,000 0 $30,600 $92,000 $428,000 2016 2017 2018 Cash payments for expenses: On 2016 expenses On 2017 expenses On 2018 expenses $185,050 $65,000 0 $97,000 135,300 95,000 $35,000 25,000 218,050 Prepare abbreviated income statements for 2016 and 2017 using: a. Cash basis accounting b. Accrual basis accounting Step by Step Solution
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