Minutemen Law Services maintains its books using cash-basis accounting. However, the company decides to borrow $100,000 from a local bank, and the bank requires Minutemen to provide annual financial statements prepared using accrual-basis accounting as part of the creditworthiness verification. During 2018, the company records the following cash flows:

Cash collected from customers				$	70,000
Cash paid for:
Salaries	$	36,000
Supplies		4,000
Rent		5,000
Insurance		7,000
Utilities		3,000			55,000
Net cash flows				$	15,000

You are able to determine the following information:

	January 1, 2018	December 31, 2018
Accounts Receivable	$	21,000		$	24,000
Prepaid Insurance		0			3,700
Supplies		5,000			2,000
Salaries Payable		2,700			4,400

Required:

Prepare an accrual-basis income statement for the year ended December 31, 2018, by calculating accrual-basis revenues and expenses.

MINUTEMEN LAW SERVICES
Income Statement
For the Year Ended December 31, 2018
Expenses:
Total expenses	0