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
SWFT Essntl Tax Individ/Bus Entities 2020
23rd Edition
ISBN:9780357391266
Author:Nellen
Publisher:Nellen
Chapter4: Gross Income
Section: Chapter Questions
Problem 15P
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