Haskins and Jones, Attorneys-at-Law, maintain its books on a cash basis. During 2013, the company collected $590,000 in fees from its clients and paid out $421,000 in expenses. You are able to determine the following information about accounts receivable, prepaid expenses, unearned fee revenue, and accrued liabilities:
|
January 1, 2013 |
December 31, 2013 |
| Accounts receivable |
$ |
71,000 |
|
$ |
67,000 |
|
| Prepaid insurance |
|
5,400 |
|
|
7,200 |
|
| Prepaid rent |
|
10,100 |
|
|
8,300 |
|
| Unearned fee revenue |
|
10,100 |
|
|
12,400 |
|
| Accrued liabilities (for various expenses) |
|
13,100 |
|
|
16,900 |
|
|
| In addition, 2013 depreciation expense on furniture and fixtures is $26,500. |
| Required: |
| Determine accrual basis net income for 2013. |