5 Exercise 2-18 (Algo) Cash versus accrual accounting (LO2-9) Stanley and Jones Lawn Service Company (S&..) maintains its books on a cash basis. However, the company recently borrowed $240.000 from a local bank, and the bank requires S&J to provide annual financial statements prepared on an accrual basis. During 2021, the following cash flows were recorded: $460,000 SOR Cash collected for Services to customers Cash paid for salaries Supplies Rent Insurance Xiscellaneous Net operating cash flow $194,000 39.000 23,000 6.000 34,000 296,000 $164,000 mit ances You are able to determine the following information about accounts receivable, prepaid expenses, and accrued liabilities: January 1, 2021 December 31, 2021 Accounts receivable $35,000 $28,500 Prepaid insurance 3.400 Supplies 2,400 3,250 Accrued liabilities (for miscellaneous expenses) 3.000 5.600 0 In addition, you learn that the bank loan was dated September 30, 2021, with principal and interest ot 6% due in one year, Depreciation on the company's equipment is $13,000 for the year, Required: Prepare an accrual basis income statement for 2021. (Ignore Income taxes.) STANLEY AND JONES LAWN SERVICE COMPANY Income Statement For the Year Ended December 31, 2021