ter 2 Exercises Saved 3 Exercise 2-18 (Algo) Cash versus accrual accounting (LO2-9) Stanley and Jones Lawn Service Company (S&J) maintains its books on a cash basis. However, the company recently borrowed $200.000 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: 15 Skipped $420,000 Cash collected for: Services to customers Cash paid for: Salaries Supplies Rent Insurance Miscellaneous Net operating cash flow $190,000 35,000 19,000 9,000 30.000 283,000 $137.000 eBook Print You are able to determine the following information about accounts receivable prepaid expenses, and accrued liabilities: January 1, 2021 $31,000 References accounts receivable Prepaid insurance Supplies Accrued liabilities (for miscellaneous expenses) December 31, 2021 $25,500 3,000 3,050 2,000 3,400 4.800 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 $20,000 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