Pearl Corp

Subject:AccountingPrice:3.87 Bought7

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Pearl Corp. maintains its financial records on the cash basis of accounting. Interested in securing a long-term loan from its regular bank, Pearl 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.     2016   2017   2018 Cash receipts from sales:                   On 2016 sales   $279,330     $172,620     $27,710   On 2017 sales   –0–     384,420     84,570   On 2018 sales               417,080 Cash payments for expenses:                   On 2016 expenses   190,150     71,300     22,550   On 2017 expenses   36,140 a   162,710     59,250   On 2018 expenses         49,340 b   212,270 aPrepayments of 2017 expenses. bPrepayments of 2018 expenses.

Using the data above, prepare abbreviated income statements for the years 2016 and 2017 on the cash basis. (Enter loss using either a negative sign preceding the number e.g. -45 or parentheses e.g. (45).)