Linda Williams, M.D., maintains the accounting records of Williams Clinic on a cash basis. During 2020, Dr. Williams collected $134,269 from her patients and paid $50,926 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.)

		January 1, 2020		December 31, 2020
Accounts receivable		$8,768		$14,914
Unearned service revenue		2,908		3,733
Accrued expenses		3,444		2,049
Prepaid expenses		1,835		3,239

Prepare a schedule that converts Dr. Williamss "excess of cash collected over cash disbursed" for the year 2020 to net income on an accrual basis for the year 2020.

LINDA WILLIAMS, M.D. Conversion of Cash Basis to Accrual Basis For the Year 2020 $ >