Haskins and Jones, Attorneys-at-Law, maintains its books on a cash basis. During 2021, the law firm collected $640,000 for services rendered to its clients and paid out $431,000 in expenses. You are able to determine the following information about accounts receivable, prepaid expenses, deferred service revenue, and accrued liabilities: January 1, 2021 December 31, 2021 Accounts receivable $ 81,000 $ 76,000 Prepaid insurance 6,400 8,300 Prepaid rent 11,100 9,000 Deferred service revenue 11,100 13,400 Accrued liabilities (for various expenses) 14,100 18,900 In addition, 2021 depreciation expense on office equipment is $31,500. Required: Determine accrual basis net income for 2021.
Haskins and Jones, Attorneys-at-Law, maintains its books on a cash basis. During 2021, the law firm collected $640,000 for services rendered to its clients and paid out $431,000 in expenses. You are able to determine the following information about accounts receivable, prepaid expenses, deferred service revenue, and accrued liabilities: January 1, 2021 December 31, 2021 Accounts receivable $ 81,000 $ 76,000 Prepaid insurance 6,400 8,300 Prepaid rent 11,100 9,000 Deferred service revenue 11,100 13,400 Accrued liabilities (for various expenses) 14,100 18,900 In addition, 2021 depreciation expense on office equipment is $31,500. Required: Determine accrual basis net income for 2021.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Haskins and Jones, Attorneys-at-Law, maintains its books on a cash basis. During 2021, the law firm collected $640,000 for services rendered to its clients and paid out $431,000 in expenses. You are able to determine the following information about accounts receivable , prepaid expenses, deferred service revenue, and accrued liabilities:
January 1,
2021 December 31,
2021
Accounts receivable $ 81,000 $ 76,000
Prepaid insurance 6,400 8,300
Prepaid rent 11,100 9,000
Deferred service revenue 11,100 13,400
Accrued liabilities
(for various expenses) 14,100 18,900
In addition, 2021 depreciation expense on office equipment is $31,500.
Required:
Determine accrual basis net income for 2021.
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