Stanley and Jones Lawn Service Company (S&J) maintains its books on a cash basis. However, the company recently borrowed $210,000 from a local bank, and the bank requires S&J to provide annual financial statements prepared on an accrual basis. During 2021, the following cash flows were recorded:

Cash collected for: Services to customers				$	430,000
Cash paid for:
Salaries	$	191,000
Supplies		36,000
Rent		20,000
Insurance		10,000
Miscellaneous		31,000			288,000
Net operating cash flow				$	142,000

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

	January 1, 2021			December 31, 2021
Accounts receivable	$	32,000		$	27,000
Prepaid insurance		0			3,100
Supplies		2,100			3,100
Accrued liabilities (for miscellaneous expenses)		3,500			5,000

In addition, you learn that the bank loan was dated September 30, 2021, with principal and interest at 6% due in one year. Depreciation on the companys equipment is $10,000 for the year. Required: Prepare an accrual basis income statement for 2021. (Ignore income taxes.)