Lisa Knight OWns and operates Lisa's Day Spa and Salon, Inc. She has decided to sell the business and retire, and is In discussions with a representatlve from a regional chaln of day spas. The discusslons are at the complex stage of agreeing on a price. Among the Important factors have been the financlal statements of the business. Lisa's secretary. Alisha, under Llsa's direction, maintained the records. Each year they developed a statement of profits on a cash basis; no balance sheet was prepared. Upon request, Lisa provided the other company with the following statement for 2021 prepared by Alisha: Upon agreement of the partles, you have been asked to examine the financlal figures for 2021 . The other company's representative said, "I question the figures because, among other things, they appear to be on a 100 percent cash basis." Your Investigations revealed the followng additional data at December 31,2021 : a. Of the $1,215,000 In spa fees collected In 2021, $142,000 was for services performed prior to 2021 . b. At the end of 2021 , spa fees of $29,000 for services performed during the year were uncollected. c. Office equipment owned and used by Lisa cost $205,000. Depreciation was estimated at $20,500 annually. d. A count of supplies at December 31, 2021, reflected $5,200 worth of tems purchased during the year that were still on hand. Also, the records for 2020 indicated that the supplies on hand at the end of that year were $3,125. e. At the end of 2021 , the secretary whose salary is $24,000 per year had not been pald for December because of a long trip that extended to January 15,2022 f. The December 2021 telephone bill for $1,400 has not been recorded or paid. In addition, the $12,200 amount on the statement of profits Includes payment of the December 2020 bill of $1,800 In January 2021 . g. The $130,000 office rent paid was for 13 months (It included the rent for January 2022 ). Required: 1. On the basis of this information, prepare a corrected income statement for 2021 (Ignore income taxes). Show your computations for any amounts changed from those in the statement prepared by Lisa's secretary