Exercise 2-18 (Algo) Cash versus accrual accounting [LO2-9] S&J Lawn Service Company maintains its books on a cash basis. However, the company recently borrowed $260,000 from a local bank, and the bank requires S&J to provide annual financial statements prepared on an accrual basis. During 2024, the following cash flows were recorded Cash collected for: Services to customers Cash paid for: Salaries Supplies Rent Insurance Miscellaneous Net operating cash flow 5 480,000 s 196,000 41.000 25,00 X, DO 30,000 305.000 $174,000 You are able to determine the following information about accounts receivable, prepaid expenses, and accrued abilities ces Accounts receivable Prepaid insurance Supplies Mccrued Liabiliti Lur miscellaneous expenses) January 1, 2824 537,000 December 31, 2034 129,500 3:600 6,00 In addition, you learn that the bank loan was dated September 30, 2024, with principal and interest at 6% due in one year Depreciation on the company's equipment is $15,000 for the year Required: Prepare an accrual basis income statement for 2024 ghore income taxes)