olga industries keeps records under the cash basis of accounting rather than the accrual basis

All accrued revenues and expenses as of 12 31 11 were collected and paid, respectively, in 2012. All deferred revenues and expenses as of 12 31 11 were earned and used, respectively, in 2012.
Required
Convert revenues and expenses from the cash basis to the accrual basis and recalculate income. Briefly explain why each adjustment is made.