The Meow Company was organized on January 1, 2020, and since its inception has not recognized accruals and deferrals. Selected

accounts revealed the following information:

Accruals and Deferrals Not Recognized at Year-end 2020 2021 2022

Prepaid expenses 29,000 30,000 34,000

Unearned revenue 20,000 28,000 15,000

Accrued expenses 27,500 25,000 27,000

Accrued revenue 42,500 45,000 41,000

Year 2020 2021 2022

Profit (Loss) 240,000 (120,000) 200,000

Based on the above and the result of your audit, compute the corrected profit for the following year:

1) 2020

A. 319,000 profit

B. 264,000 profit

C. 216,000 profit

D. 246,000 profit

2) 2021

A. 98,000 loss

B. 122,000 loss

C. 118,000 loss

D. 127,000 loss

3) 2022

A. 233,000 profit

B. 211,000 profit

C. 222,000 profit

D. 244,000 profit