Stanley and Jones Lawn Service Company (S&J) maintains its books on a cash basis. However, the company recently borrowed $270,000 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 $490,000 Cash paid for: Salaries. Supplies Rent $197,000 42,000 26,000 9,000 Insurance Miscellaneous 37,000 311,000 $179,000 Net operating cash flow You are able to determine the following information about accounts receivable, prepaid expenses, and accrued liabilities: Accounts receivable January 1, 2021 December 31, 2021 $38,000 $30,000 0 Prepaid insurance Supplies 3,700 3,400 2,700 Accrued liabilities (for miscellaneous expenses) 4,100 6,200 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 company's equipment is $16,000 for the year. Required: Prepare an accrual basis income statement for 2021. (Ignore income taxes.) 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 company's equipment is $16,000 for the year. Required: Prepare an accrual basis income statement for 2021. (Ignore income taxes.) STANLEY AND JONES LAWN SERVICE COMPANY Income Statement For the Year Ended December 31, 2021 Operating expenses: Total operating expenses Operating income Other expense: Net income