Reference no: EM134012
Jill Accardo, M.D., maintains the accounting records of Accardo Clinic on a cash basis. In 2007, Dr. Accardo collected $142,600 from her patients and paid $55,470 in expenses. At 1st January, 2007, and 31st December, 2007, she had accounts receivable, accrued expenses, unearned service revenue, and prepaid expenses as follows. (All long-lived assets are rented.)
January 1, 2007 December 31, 2007
Accounts receivable $9,250 $15,927
Unearned service revenue 2,840 4,111
Accrued expenses 3,435 2,108
Prepaid expenses 1,917 3,232
Purpose a schedule that converts Dr. Accord's excess of cash collected over cash disbursed for the year 2007 to total income on an accrual basis for the year 2007.