Corinne Dunbar, M.D., maintains the accounting records of Dunbar Clinic on a cash basis. During 2015, Dr. Dunbar collected €142,600 from her patients and paid €60,470 in expenses.

At January 1, 2015, and December 31, 2015, she had accounts receivable, unearned service revenue, accrued expenses, and prepaid expenses as follows. (All long-lived assets are rented.)

Instructions Prepare a schedule that converts Dr. Dunbar’s “excess of cash collected over cash disbursed” for the year 2015 to net income on an accrual basis for the year 2015.

Transcribed Image Text:

Accounts receivable Unearned service revenue Accrued expenses Prepaid expenses January 1, 2015 December 31, 2015 11,250 15,927 2,840 4,111 3,435 2,108 1,917 3,232