Lopez Accessories maintains its books using cash-basis accounting. However, the company recently borrowed $50,000 from a local bank and the bank requires Lopez to provide annual financial statements prepared using accrual-basis accounting as part of the credit worthiness verification. During 2021, the following cash flows were recorded:

Cash collected from customers $60,000

Cash paid for:

Salaries $25,000

Supplies 6,000

Maintenance 5,000

Insurance 7,000

Advertising. 4,000

47,000

Cash-basis profit $13,000

You are able to determine the following information:

January 1, 2021

January1,2021. December 31, 2021

Accounts receivable. $15,000 $18,000

Prepaid insurance 1,800 4,100

Supplies 800 -0-

Salaries payable 2,200 2,000

Required:

what is accrual-basis income statement for December 31, 2021, by calculating accrual-basis revenues and expenses.