S&J Lawn Service Company maintains its books on a cash basis. However, the company recently borrowed $180,000 from a local bank, and the bank requires S&J to provide annual financial statements prepared on an accrual basis. During 2024, the following cash flows were recorded:

Cash collected for: Services to customers$ 400,000Cash paid for:Salaries$ 188,000Supplies33,000Rent17,000Insurance7,000Miscellaneous28,000273,000Net operating cash flow$ 127,000

You are able to determine the following information about accounts receivable, prepaid expenses, and accrued liabilities:

January 1, 2024December 31, 2024Accounts receivable$ 40,000$ 31,000Prepaid insurance02,800Supplies1,8001,900Accrued liabilities (for miscellaneous expenses)3,2004,400

In addition, you learn that the bank loan was dated September 30, 2024, with principal and interest at 6% due in one year. Depreciation on the companys equipment is $18,000 for the year.

Required:

Prepare an accrual basis income statement for 2024. (Ignore income taxes.)