Question 1

Grier & Associates maintains its records on the cash basis. You have been engaged to convert its cash basis income statement to the accrual basis. The cash basis income statement, along with additional information, follows:

Grier & Associates Income Statement (Cash Basis) For the Year Ended December 31, 2017
Cash receipts from customers				$464,400
Cash payments:
Salaries and wages		$166,100
Income taxes		64,200
Insurance		44,300
Interest		20,400		295,000
Net income				$169,400

Additional information:

		Balances at 12/31
		2017		2016
Accounts receivable		$47,200		$29,100
Salaries and wages payable		11,000		21,900
Income taxes payable		23,900		18,800
Prepaid insurance		7,800		3,800
Accumulated depreciation		90,900		71,000
Interest payable		3,200		9,300

No plant assets were sold during 2017. Prepare the income statement as per accrual basis.