Jill Accardo, M.D., maintains the accounting records of Accardo Clinic on a cash basis. During 2020, Dr. Accardo collected $142,600 from her patients and paid $55,470 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.)

Instructions

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

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December 31, 2020 $15,927 4,111 2,108 3,232 January 1, 2020 Accounts receivable Unearned service revenue Accrued expenses Prepaid expenses $9,250 2,840 3,435 1,917