Question
Sheridan Corp. maintains its financial records on the cash basis of accounting. Interested in securing a long-term loan from its regular bank, Sheridan Corp. requests
Sheridan Corp. maintains its financial records on the cash basis of accounting. Interested in securing a long-term loan from its regular bank, Sheridan Corp. requests you as its independent CPA to convert its cash-basis income statement data to the accrual basis. You are provided with the following summarized data covering 2019, 2020, and 2021.
2019 2020 2021
Cash receipts from sales:
On 2019 sales $292,020 $163,350 $27,460
On 2020 sales -0- 385,180 96,310
On 2021 sales 373,280
Cash payments for expenses:
On 2019 expenses 181,360 65,930 26,670
On 2020 expenses 40,760 a 168,870 52,050
On 2021 expenses 49,420 b 220,490
a Prepayments of 2020 expenses.
b Prepayments of 2021 expenses.
Collapse question part
(a)
Using the data above, abbreviated income statements for the years 2019 and 2020 on the cash basis. (Enter loss using either a negative sign preceding the number e.g. -45 or parentheses e.g. (45).)
SHERIDAN CORP.
Income Statement (Cash Basis)
choose the accounting period
2019 2020
select an income statement item
$enter a dollar amount
$enter a dollar amount
select an income statement item
enter a dollar amount
enter a dollar amount
select a closing income statement item
$enter a total net income or loss amount
$enter a total net income or loss amount
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