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Stanley and Jones Lawn Service Company (S&J) maintains its books on a cash basis. However, the company recently borrowed $100,000 from a local bank, and
Stanley and Jones Lawn Service Company (S\&J) 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 2021, the following cash flows were recorded: You are to determine the following information about accounts receivable, prepaid expenses and accrued liabilities: "(Tor miscellaneous expenses) In addition, you learn that the bank loan was dated September 30, 2021, with principal at 6% due in one year. Depreciation on the company's equipment is $10,000 for the year. Required: 1. Determine the Service Revenue, supplies expense, rent expense, insurance expense and miscellaneous expense using the accrual basis (Show all of your computations with the work paper provided). Requirement 1: Requirement 1: \begin{tabular}{|l|} \hline Converting Insurance paid to Insurance expense using the accrual basis \\ \hline \\ \hline \end{tabular}
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