Haskins and Jones Attorneys-at-Law, maintains its books on a cash basis. During 2021, the law...
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Accounting
Haskins and Jones Attorneys-at-Law, maintains its books on a cash basis. During 2021, the law firm collected $615,000 for services rendered to its clients and paid out $426,000 in expenses. You are able to determine the following information about accounts receivable prepaid expenses, deferred service revenue, and accrued liabilities Accounts receivable Prepaid insurance Prepaid rent Deferred service revenue Accrued liabilities (for various expenses) January 1 2021 $76,000 5,900 10,600 10,600 December 31 2021 $ 67,000 7.300 9,500 12,400 13,600 17,909 In addition 2021 depreciation expense on office equipment is $29.000 Required: Determine accrual basis net income for 2021 Cash basis income Add Increase in prepaid insurance Decrease in prepaid ront Increase in accrued liabilities Deduct
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