Jill Accardo, M.D., maintains the accounting records of Accardo Clinic on a cash basis. During 2007, Dr. Accardo collected $142,600 from her patients and paid $55,470 in expenses. At January 1, 2007, and December 31, 2007, she had accounts receivable, unearned service revenue, accrued expenses, and prepaid expenses as follows. (All long-lived assets are rented.)

January 1, 2007 December 31, 2007
Accounts receivable $9,250 $15,927
Unearned service revenue 2,840 4,111
Accrued expenses 3,435 2,108
Prepaid expenses 1,917 3,232

Instructions:

Prepare a schedule that converts Dr. Accardo's "excess of cash collected over cash disbursed" for the year 2007 to net income on an accrual basis for the year 2007.

Instructions:

Prepare a schedule that converts Dr. Accardo's "excess of cash collected over cash disbursed" for the year 2014 to net income on an accrual basis for the year2014.