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Please help me answer this asap! Thanks in advance! Karen White, M.D., maintains the accounting records of White Clinic on a cash basis. During 2020,
Please help me answer this asap! Thanks in advance!
Karen White, M.D., maintains the accounting records of White Clinic on a cash basis. During 2020, Dr. White collected $152,280 from her patients and paid $60,212 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 $8,684 $15,786 Unearned service revenue 2,626 4,015 Accrued expenses 3,691 2,266 Prepaid expenses 1,878 3,444 Prepare a schedule that converts Dr. White's "excess of cash collected over cash disbursed" for the year 2020 to net income on an accrual basis for the year 2020. KAREN WHITE, M.D. Conversion of Cash Basis to Accrual Basis For the Year 2020 Excess of cash collected over cash disbursed $ Add V: Increase in accounts receivable Less V: Increase in unearned service revenue > Add : Decrease in accrued expensesStep by Step Solution
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