Lisa Anderson, M.D., maintains the accounting records of Anderson Clinic on a cash basis. During 2020, Dr. Anderson collected $141,493 from her patients and paid $54,018 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.) Accounts receivable Unearned service revenue Accrued expenses Prepaid expenses January 1, 2020 $9,027 2,836 3,139 1,927 December 31, 2020 $15,442 4,472 1,985 3,411 Prepare a schedule that converts Dr. Anderson's "excess of cash collected over cash disbursed" for the year 2020 to net income on an accrual basis for the year 2020. LISA ANDERSON, M.D. Conversion of Cash Basis to Accrual Basis

Lisa Anderson, M.D., maintains the accounting records of Anderson Clinic on a cash basis. During 2020, Dr. Anderson collected $141,493 from her patients and paid $54,018 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.) Accounts receivable Unearned service revenue Accrued expenses Prepaid expenses January 1, 2020 $9,027 2,836 3,139 1,927 December 31, 2020 $15,442 4,472 1,985 3,411 Prepare a schedule that converts Dr. Anderson's "excess of cash collected over cash disbursed" for the year 2020 to net income on an accrual basis for the year 2020. LISA ANDERSON, M.D. Conversion of Cash Basis to Accrual Basis

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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