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.

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(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