TechWave Innovations recorded the following expense-related transactions during the year ending December 31, 20X1:

• On January 1, paid $90,000 for rent for the entire year.
• On April 1, purchased supplies costing $35,000 on account.
• On July 1, paid $18,000 in wages to employees.
• On October 1, accrued $22,000 in interest expense on a loan.

Required:

• Prepare the journal entries for each of the above transactions.
• Calculate the total expenses recognized for the year ending December 31, 20X1.
• Prepare the expense section of the income statement for the year.
• Discuss the impact of accrual accounting on expense recognition and the company’s profitability.