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SUPPLEMENTAL PROBLEM 4-2 CASH BASIS vs ACCRUAL BASIS ACCOUNTING ACCRUAL BASIS TO CASH BASIS Determine the amount of cash paid (or received) for each of the following situations: A. Deferred expenses (example: Prepaid Insurance) Ending Expense Amount Recognized Paid 1,000 1,000 5,000 5,000 5,000 B. Accrued Expenses (example: Salaries Payable) Beginning Ending Expense Amount Recognized Paid 5,000 5,000 5,000 5,000 5,000 1,000 1,000 C. Deferred Revenues: (example: Unearned Revenue) Ending Revenue Amount RecognizedReceived 5,000 5,000 5,000 5,000 5,000 1,000 1,000 D. Accrued Revenues (example: Interest Receivable) Beginning Ending Expense Amount RecognizedReceived 5,000 5,000 5,000 5,000 5,000 1,000 1,000 5. 750