S&J Lawn Service Company maintains its books on a cash basis. However, the company recently borrowed $100,000 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 Cash paid for: Salaries Supplies Rent Insurance Miscellaneous Net operating cash flow Accounts receivable Prepaid insurance Supplies Accrued liabilities (for miscellaneous expenses) You are able to determine the following information about accounts receivable, prepaid expenses, and accrued liabilities: January 1, December 31, 2024 2024 $32,000 $ 27,000 2,000 1,500 0 1,000 $ 180,000 25,000 12,000 6,000 20,000 2,400 S&J LAWN SERVICE COMPANY Income Statement 3,400 $ 320,000 Required: Prepare an accrual basis income statement for 2024. (Ignore income taxes.) 243,000 $ 77,000 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 $10,000 for the year.

S\&J) Lawn Service Company maintains its books on a cash basis. However, the company recently borrowed $100,000 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: You are able to determine the following information about accounts receivable, prepaid expenses, and accrued liabilities: 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 $10,000 for the year. Required: Prepare an occival basis income statement for 2024. (ignore income taxes)