June Murray, M.D., maintains the accounting records of Murray Clinic on a cash basis. During 2014, Dr. Murray collected $285,200 from her patients and paid $110,940 in expenses. At January 1, 2014, and December 31, 2014, she had accounts receivable, unearned service revenue, accrued expenses, and prepaid expenses as follows. All long-lived assets are rented.

Instructions
Prepare a schedule that converts Dr. Murray€˜s €œexcess of cash collected over cash disbursed€ for the year 2014 to net income on an accrual basis for the year2014.

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January 1, 2014December 31, 2014 Accounts receivable Unearned service revenue Accrued expenses Prepaid expenses $18,500 5,680 6,870 3,834 $31,854 8,222 4,216 6,464