Cash to Accrual Basis - 10 points Stephenson & Associates maintains its records on the...
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Cash to Accrual Basis - 10 points Stephenson & Associates maintains its records on the cash basis. You have been engaged to convert its cash basis income statement to the accrual basis in an income statement format. The cash basis income statement, along with additional information, follows: Stephenson & Associates Income Statement (Cash Basis) For the Year Ended December 31, 2019 Cash receipts from customers $425,000 Cash payments: Salaries and wages $170,000 Income taxes 65,000 Insurance 40,000 Interest 25,000 300,000 Net income $125,000 Additional information: Balances at 12/31 2019 2018 Accounts receivable $50,000 $30,000 Salaries and wages payable 10,000 20,000 Income taxes payable 24,000 19,000 Prepaid insurance 8,000 4,000 Accumulated depreciation 95,000 80,000 Interest payable 3,000 9,000 No plant assets were sold during 2018. Show your calculations for conversion of the Revenue and Expenses in a simple income statement format below
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