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).) PEARL CORP. Income Statement (Cash Basis) December 31,For the Year Ended December 31,For the Quarter Ended December 31, 2016 2017 Dividends Expenses Net Income / (Loss) Retained Earnings, January 1 Retained Earnings, December 31 Sales Revenue $ $ Dividends Expenses Net Income / (Loss) Retained Earnings, January 1 Retained Earnings, December 31 Sales Revenue Dividends Expenses Net Income / (Loss) Retained Earnings, January 1 Retained Earnings, December 31 Sales Revenue $ $ LINK TO TEXT

Using the data above, prepare abbreviated income statements for the years 2016 and 2017 on the accrual basis. (Enter loss using either a negative sign preceding the number e.g. -45 or parentheses e.g. (45).) PEARL CORP. Income Statement (Accrual Basis) December 31,For the Year Ended December 31,For the Quarter Ended December 31, 2016 2017 Dividends Expenses Net Income / (Loss) Retained Earnings, January 1 Retained Earnings, December 31 Sales Revenue $ $ Dividends Expenses Net Income / (Loss) Retained Earnings, January 1 Retained Earnings, December 31 Sales Revenue Dividends Expenses Net Income / (Loss) Retained Earnings, January 1 Retained Earnings, December 31 Sales Revenue $ $