Your examination of the records of a company that follows the cash basis of accounting tells you that the company’s reported cash-basis earnings in 2014 are $33,640.

If this firm had followed accrual-basis accounting practices, it would have reported the following year-end balances.

2014 2013 Accounts receivable $3,400 $2,800 Supplies on hand 1,300 1,460 Unpaid wages owed 2,000 2,400 Other unpaid expenses 1,400 1,100 Instructions Determine the company’s net earnings on an accrual basis for 2014. Show all your calculations in an orderly fashion.

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