Required: Prepare an accrual basis income statement for 2018. (Ignore income taxes.) E 2-19 Cash versus accrual accounting LO2-8 Haskins and Jones, Attorneys-at-Law, maintain its books on $545,000 in fees from its clients and paid out $412,000 in expenses. You are able to determine the following infor mation about accounts receivable, prepaid expenses, deferred fee revenue, and accrued liabilities: a cash basis. During 2018, the company collected January 1, 2018 December 31, 2018 Accounts receivable Prepaid insurance Prepaid rent Deferred fee revenue Accrued liabilities $62,000 4,500 9,200 9,200 12,200 $55,000 6,000 8,200 11.000 15,600 (for various expenses) In addition, 2018 depreciation expense on office equipment is $22,000