S&J Lawn Service Company maintains its books on a cash basis. However, the company recently borrowed $120,000 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: Salaries Supplies Rent Cash collected for: Services to customers $ 340,000 Cash paid for: $ 182,000 27,000 11,000 8,000 22,000 250,000 $ 90,000 Insurance Miscellaneous Net operating cash flow You are able to determine the following information about accounts receivable, prepaid expenses, and accrued liabilities: Accounts receivable Prepaid insurance Supplies Accrued liabilities (for miscellaneous expenses) January 1, 2024 $ 34,000 December 31, 2024 $ 28,000 0 2,200 1,200 2,600 1,600 3,200 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 company's equipment is $12,000 for the year. Required: Prepare an accrual basis income statement for 2024. (Ignore income taxes.) S&J LAWN SERVICE COMPANY Income Statement For the Year Ended December 31, 2024 Service revenue Operating expenses: Total operating expenses Operating income Other expense: Net income $ 340,000 0 340,000 $ 340,000