Francis Mayberry, M.D., maintains the accounting records of Mayberry Clinic on a cash basis. During 2020, Dr. Mayberry collected $134,269 from her patients and paid $50,926 in expenses. At January 1, 2020, and December 31, 2020, she had accounts receivable, unearned service revenue, accrued expenses, and prepaid expenses as follows. (All long-lived assets are rented.) January 1, 2020 December 31, 2020 Accounts receivable $8,768 $14,914 Unearned service revenue 2,908 3,733 Accrued expenses 3,444 2,049 Prepaid expenses 1,835 3,239 Prepare a schedule that converts Dr. Mayberry’s "excess of cash collected over cash disbursed" for the year 2020 to net income on an accrual basis for the year 2020.
Francis Mayberry, M.D., maintains the accounting records of Mayberry Clinic on a cash basis. During 2020, Dr. Mayberry collected $134,269 from her patients and paid $50,926 in expenses. At January 1, 2020, and December 31, 2020, she had accounts receivable, unearned service revenue, accrued expenses, and prepaid expenses as follows. (All long-lived assets are rented.) January 1, 2020 December 31, 2020 Accounts receivable $8,768 $14,914 Unearned service revenue 2,908 3,733 Accrued expenses 3,444 2,049 Prepaid expenses 1,835 3,239 Prepare a schedule that converts Dr. Mayberry’s "excess of cash collected over cash disbursed" for the year 2020 to net income on an accrual basis for the year 2020.
Chapter16: Accounting Periods And Methods
Section: Chapter Questions
Problem 33P
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Question
Francis Mayberry, M.D., maintains the accounting records of Mayberry Clinic on a cash basis. During 2020, Dr. Mayberry collected $134,269 from her patients and paid $50,926 in expenses. At January 1, 2020, and December 31, 2020, she had accounts receivable, unearned service revenue, accrued expenses, and prepaid expenses as follows. (All long-lived assets are rented.)
|
January 1, 2020
|
December 31, 2020
|
|||
|---|---|---|---|---|
|
Accounts receivable
|
$8,768 | $14,914 | ||
|
Unearned service revenue
|
2,908 | 3,733 | ||
|
Accrued expenses
|
3,444 | 2,049 | ||
|
Prepaid expenses
|
1,835 | 3,239 |
Prepare a schedule that converts Dr. Mayberry’s "excess of cash collected over cash disbursed" for the year 2020 to net income on an accrual basis for the year 2020.
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