Stanley and Jones Lawn Service Company (S&J) maintains its books on a cash basis. However, the company recently borrowed $170,000 from a local bank and the bank requires S&J to provide annual financial statements prepared on an accrual basis. During 2013, the following cash flows were recorded:

Cash collected from customers				$	390,000
Cash paid for:
Salaries	$	187,000
Supplies		32,000
Rent		16,000
Insurance		6,000
Miscellaneous		27,000			268,000
Net operating cash flow				$	122,000

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

	January 1, 2013			December 31, 2013
Accounts receivable	$	39,000		$	30,500
Prepaid insurance		0			2,700
Supplies		1,700			1,850
Accrued liabilities (for miscellaneous expenses)		3,100			4,200

In addition, you learn that the bank loan was dated September 30, 2013, with principal and interest at 6% due in one year. Depreciation on the company