Compute al''s gross income for 2011

Reference no: EM13132987

Al is a medical doctor who conducts his practice as a sole proprietor. During 2011, he received cash of $280,000 for medical services. Of the amount collected, $40,000 was for services provided in 2010. At the end of 2011, Al had accounts receivable of $60,000, all for services rendered in 2011. In addition, at the end of the year, Al received $12,000 as an advance payment from a health maintenance organization (HMO) for services to be rendered in 2012. Compute Al's gross income for 2011"

a) Using the cash basis of accounting.
b) Using the accrual basis of accounting.
c) Advise Al on which method of accounting he should use.

Reference no: EM13132987

Questions Cloud

Types of symmetry : Describe objects that have each of the following types of symmetry.

Deep-colored magic : I agree with Connie, The Catalinas hold their own deep-colored magic,because when I was in the military is was station at white sands New Mexico, which east of Arizona, and six to eight hours away. While in the military I was in a program to help sin..

What is consolidated net income : During the current year, Jordan reported interest expense of $22,000 while Fey reported interest income of $21,000. What is consolidated net income?

Contemplating an advertising campaign : Disney's variable costs are 30% of sales. The company is contemplating an advertising campaign that will cost $22,000. If sales are expected to increase $40,000, by how much will the company's net income increase?

Compute al''s gross income for 2011 : Al is a medical doctor who conducts his practice as a sole proprietor. During 2011, he received cash of $280,000 for medical services. Of the amount collected, $40,000 was for services provided in 2010.

Find standard deviation of number of seeds germinate per row : Probability of selecting a row with that number of seeds germinating. Determine the standard deviation of the number of seeds per row that germinated.

What are the effects of the annuity of betty gross income : On July 1, 1998, when Betty was 65 years old, she purchased an annuity contract for $108,000. The annuity was to pay Betty $9,000 on June 30 each year for the remainder of her life. Betty died on March 31, 2011. What are the effects of the annuity..

How many grams of carbon dioxide can form : when 0.120 mol of carbonis burned in a closed vessel with 6.90g of oxygen. how many grams of carbon dioxide can form??

Wreath process for both old-new manufacturing process : Compute the value added, nonvalue added, and the total lead time of the wreath process for both the old and the new manufacturing process.

User Account

All Pages