tbs.acc.acct.001_2017, Convert Cash to Accrual

tbs.acc.acct.001_2017, Convert Cash to Accrual Crimson Consultants (Crimson) acquired a marketing consulting services firm that does business as a corporation. In year 1, Crimson maintained its accounting records on a cash basis. However, based on the recommendation of the controller, Tara Dawson (Tara), Crimson converted its accounting records from cash basis to accrual basis immediately after the end of year 1. The accounting records for year 1 are provided below. January 1 December 31 Accounts receivable (AR) $ 55,000 $ 40,000 Unearned consulting revenue 15,000 10,000 Accrued liabilities 8,000 12,000 Prepaid expenses 1,000 3,000 During the year: Cash collections from customers $ 500,000 Cash paid for expenses 200,000 Based on the year 1 information in the table above, determine the correct revenue and expense amounts on an accrual basis for year 1. A1 lock copy cut paste A B B 1 Conversion of Cash Basis to Accrual Basis Year 1 N Accrual basis revenue 123 3 123 Accrual basis expenses Give feedback ** Ask an instructor