Minutemen Law Services maintains its books using cash-basis accounting. However, the company decides to borrow $100,000 from a local bank, and the bank requires Minutemen to provide annual financial statements prepared using accrual-basis accounting as part of the creditworthiness verification. During 2024, the company records the following cash flows:

You are able to determine the following information:

Required:
Prepare an accrual-basis income statement for the year ended December 31, 2024, by calculating accrual-basis revenues and expenses.

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Cash collected from customers Cash paid for: Salaries Supplies Rent Insurance Utilities Net cash flows $36,000 4,000 5,000 7,000 3,000 $70,000 55,000 $15,000