Stanley and Jones Lawn Service Company (S&J) maintains its books on a cash basis. However, the company recently borrowed $120,000 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				$	340,000
Cash paid for:
Salaries	$	182,000
Supplies		27,000
Rent		11,000
Insurance		8,000
Miscellaneous		22,000			250,000
Net operating cash flow				$	90,000

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

	January 1, 2021			December 31, 2021
Accounts receivable	$	34,000		$	28,000
Prepaid insurance		0			2,200
Supplies		1,200			1,600
Accrued liabilities (for miscellaneous expenses)		2,600			3,200

STANLEY AND JONES LAWN SERVICE COMPANY
Income Statement
For the Year Ended December 31, 2021
Sales revenueselected answer (incorrect)		not attempted
Operating expenses:
Salaries expenseselected answer correct	not attempted
Supplies expenseselected answer correct	not attempted
Rent expenseselected answer correct	not attempted
Insurance expenseselected answer correct	not attempted
Miscellaneous expenseselected answer correct	not attempted
Depreciation expenseselected answer correct	not attempted
not attempted	not attempted
not attempted	not attempted
Total operating expenses		0
Operating income		0
Other expense:
Interest expenseselected answer correct		not attempted
Net income		$