Horned Frogs Fine Cooking maintains its books using cash-basis accounting. However, the company recently borrowed $50,000 from a local bank, and the bank requires the company to provide annual financial statements prepared using accrual-basis accounting as part of the creditworthiness verification. During 2015, the company records the following cash flows:

You are able to determine the following information:

Required:
Prepare an accrual-basis income statement for December 31, 2015, by calculating accrual-basis revenues andexpenses.

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Cash collected from customers $65,000 Cash paid for: Salaries Supplies Repairs and maintenance $23,000 9,000 8,000 4,000 6,000 Advertising 50,000 S15,000 Net cash flows January 1, 2015 December 31, 2015 S18,000 1,700 $13,000 Accounts Receivable Prepaid Insurance Supplies Salaries Payable 4,200 2,000 2,800 4,200