2 Exercise 2-19 (Algo) Cash versus accrual accounting [LO2-9] Haskins and Jones, Attorneys-at-Law, maintains its books on a cash basis. During 2024, the law firm collected $550,000 for services rendered to its clients and paid out $413,000 in expenses. You are able to determine the following information about accounts receivable, prepaid expenses, deferred service revenue, and accrued liabilities: Accounts receivable Prepaid insurance Prepaid rent Deferred service revenue Accrued liabilities January 1, 2024 $ 63,000 4,600 9,300 9,300 12,300 Required: Determine accrual basis net income for 2024. December 31, 2024 $ 58,000 5,600 8,000 10,800 (for various expenses) In addition, 2024 depreciation expense on office equipment is $22,500. 15,300

Exercise 2-19 (Algo) Cash versus accrual accounting [LO2-9] Haskins and Jones, Attorneys-ot-Low, maintains its books on a cash basis. During 2024, the law flim collected $550,000 for services rendered to its clients and paid out $413,000 in expenses. You are able to determine the following information about accounts receivable, prepaid expenses, deferted service tevenve, and accrued liabilities: In addition, 2024 depreciation expense on office equipment is $22,500 Required: Determine accrual basis net income for 2024