Baker International maintains its books using cash-basis accounting. However, the company plans to issue stock and...

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Baker International maintains its books using cash-basis accounting. However, the company plans to issue stock and must provide annual financial statements prepared using accrual-basis accounting. During 2024, the following cash flows were recorded: Cash collected from customers Cash paid for: Salaries Rent Supplies Cash-basis profit $480,000 $290,000 24,000 108,000 422,000 $58,000 You are able to determine the following information: Accounts receivable Supplies Salaries payable Required: January 1, December 31, 2024 2024 $15,000 $8,000 21,400 27,800 9,600 12,500 Prepare an accrual-basis income statement for December 31, 2024, by calculating accrual-basis revenues and expenses. Required: Prepare an accrual-basis income statement for December 31, 2024, by calculating accrual-basis revenues and expenses.. BAKER INTERNATIONAL Income Statement For the year ended December 31, 2024 Service revenue Expenses: $ 480,000 Salaries expense Supplies Rent expense 290,000 108,000 24,000 Total expenses 422,000 Net Income $ 58,000 Baker International maintains its books using cash-basis accounting. However, the company plans to issue stock and must provide annual financial statements prepared using accrual-basis accounting. During 2024, the following cash flows were recorded: Cash collected from customers Cash paid for: Salaries Rent Supplies Cash-basis profit $480,000 $290,000 24,000 108,000 422,000 $58,000 You are able to determine the following information: Accounts receivable Supplies Salaries payable Required: January 1, December 31, 2024 2024 $15,000 $8,000 21,400 27,800 9,600 12,500 Prepare an accrual-basis income statement for December 31, 2024, by calculating accrual-basis revenues and expenses. Required: Prepare an accrual-basis income statement for December 31, 2024, by calculating accrual-basis revenues and expenses.. BAKER INTERNATIONAL Income Statement For the year ended December 31, 2024 Service revenue Expenses: $ 480,000 Salaries expense Supplies Rent expense 290,000 108,000 24,000 Total expenses 422,000 Net Income $ 58,000