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