Supplemental Problem 4-3 CASH AND ACCRUAL BASIS STATEMENTS 1. Jill Accardo, M.D, maintains the accounting records of Accardo Clinic on a cash basis. During 2017, Dr. Accardo collected S142,600 from her patients and paid S55,470 in expenses. At January 1, 2017, and December 31, 2017, she had accounts receivable, uncarned service revenue, accrued prepaid expenses as follows. (All long-lived assets are rented.) expenses, and Accounts receivable Unearned service revenue Accrued expenses Prepaid expenses $9,250 2,840 3,435 1,917 $15,927 4,111 2,108 3,232 Instructions Prepare a schedule that converts Dr. Accardo's "excess of cash collected over cash disbursed" for the year 2017 to net income on an accrual basis for the year 2017 Wayne Rogers Corp. maintains its financial records on the cash basis of accounting. Interested in securing a long-term loan from its regular bank, Wayne Rogers 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 2016, 2017, and 2018 2. 2016 2017 2018 Cash receipts from sales: On 2016 sales On 2017 sales On 2018 sales $295,000$160,000 30,000 355,000 90,000 408,000 Cash payments for expenses: On 2016 expenses On 2017 expenses On 2018 expenses 185,000 40,000* 67,000 160,000 45,000 25,000 55,000 218,000 Prepayments of 2018 expenses. Prepayments of 2017 expenses Instructions (a) Using the data above, prepare abbreviated income statements for the years 2017 and 2018 on the cash basis (b) Using the data above, prepare abbreviated income statements for the years 2017 and 2018 on the accrual basis