Problem #4 Presented below is the comparative statement of income, prepared on a cash basis, for Mingwei Ltd. for the past two years. The manager is puzzled by the fact that net income was lower in 2023 than 2022. MINGWEI LTD. Statement of Income, Cash Basis Years Ended December 31 2023 $350,000 2022 $365.000 Service revenue Expenses Salaries expense. Office expense Repairs and maintenance expense Interest expense Total expenses. Income before income tax Income tax expense Net income 200,000 54,000 20,000 15,000 289,000 61,000 24.400 $ 36,600 190,000 55,000 15,000 2.000 262.000 103,000 41.200 $ 61,800 In talking with the manager, you gather the following information, which was not reflected in the above statements: 1. The company borrowed $240,000 on June 1, 2022 and repaid the amount with interest on June 1, 2023. The interest rate was 6%. The journal entry to record the repayment on June 1, 2023 was: Bank Loan Payable 240,000 Interest Expense. 14,400 Cash... 254,400 2. A customer made a deposit of $12,000 on December 1, 2022 for services to be performed in January 2023. The journal entry made on December 1, 2022 was: Cash...... 12,000 Service Revenue 12,000 3. A bill for $5,000 maintenance work done in December 2022 was paid on January 15, 2023. The journal entry to record the payment in 2023 was: Repairs and Maintenance Expense. 5,000 Cash 5,000 Instructions Assuming that no adjusting entries were made for the above transactions, prepare a revised comparative statement of income for 2022 and 2023. (Income tax is calculated at 40% of income before income tax.) (15 marks)