Question
Dr. Jones maintains her books on a cash basis. At year end, her CPA converts them to an accrual basis. Dr. Jones provides the following
Dr. Jones maintains her books on a cash basis. At year end, her CPA converts them to an accrual basis. Dr. Jones provides the following information regarding her cash basis income for 2019: Cash receipts $400,000 Cash payments $300,000 Balance 12/31/18 Balance 12/31/19 Other information: Accounts receivable 105,000 85,000 Unearned revenue 35,000 10,000 Accrued expenses 220,000 199,000 Prepaid expenses 22,000 27,000 Accumulated depreciation 100,000 130,000 No plant assets were sold during 2019. Calculate accrual basis revenue, accrual basis expense and accrual basis net income.
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