*E3-18B (Cash to Accrual Basis) June Murray, M.D., maintains the accounting records of Murray Clinic on a cash basis.

*E3-18B (Cash to Accrual Basis) June Murray, M.D., maintains the accounting records of Murray Clinic on a cash basis. During 2014, Dr. Murray collected $285,200 from her patients and paid $110,940 in expenses. At January 1, 2014, and December 31, 2014, she had accounts receivable, unearned service revenue, accrued expenses, and prepaid expenses as follows. All long-lived assets are rented.

                                                                 January 1, 2014                           December 31, 2014

Accounts receivable                                    $18,500                                           $31,854

Unearned service revenue                                5,680                                              8,222

Accrued expenses                                            6,870                                              4,216

Prepaid expenses                                            3,834                                               6,464

Instructions

Prepare a schedule that converts Dr. Murray‘s “excess of cash collected over cash disbursed” for the year 2014 to net income on an accrual basis for the year 2014.