Question

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 2013, 2014, and 2015.
2013 2014 2015
Cash receipts from sales:
On 2013 sales 293,430 166,990 39,820
On 2014 sales 361,040 94,750
On 2015 sales 409,660
Cash payments for expenses:
On 2013 expenses 191,910 68,8703 4,880
On 2014 expenses 45,320 a176,560 55,130
On 2015 expenses 47,250 b222,210
a) Prepayments of 2014 expenses.
b) Prepayments of 2015 expenses.

Answer 1

Answer:

Kindly check attached picture

Explanation:

Given the following :

2013 2014 2015

Cash receipts from sales:

On 2013 sales 293,430 166,990 39,820

On 2014 sales 361,040 94,750

On 2015 sales 409,660

Cash payments for expenses:

On 2013 expenses 191,910 68,8703 4,880

On 2014 expenses 45,320 a176,560 55,130

On 2015 expenses 47,250 b222,210

Kindly check attached picture for detailed explanation