Haskins and Jones, Attorneys-at-Law, maintains its books on a cash basis. During 2021, the law firm collected
Question:
Haskins and Jones, Attorneys-at-Law, maintains its books on a cash basis. During 2021, the law firm collected $545,000 for services rendered to its clients and paid out $412,000 in expenses. You are able to determine the following information about accounts receivable, prepaid expenses, deferred service revenue, and accrued liabilities:
In addition, 2021 depreciation expense on office equipment is $22,000.
Required:Determine accrual basis net income for 2021.
Transcribed Image Text:
December 31, 2021 January 1, 2021 Accounts receivable Prepaid insurance Prepaid rent Deferred service revenue Accrued liabilities (for various expenses) $62,000 $55,000 4,500 6,000 8,200 9,200 9,200 11,000 12,200 15,600
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Cash basis income 545000 412000 133000 Add Increas...View the full answer
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Related Book For
Intermediate Accounting
ISBN: 978-1260481952
10th edition
Authors: J. David Spiceland, James Sepe, Mark Nelson, Wayne Thomas
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