Problem 3-2A Convert cash-basis accounting to accrual-basis accounting (LO3-1, 3-2) Minutemen Law Services maintains its books using cash-basis accounting. However, the company decides to borrow $100,000 from a local bank, and the bank requires Minutemen to provide annual financial statements prepared using accrual basis accounting as part of the credit worthiness verification. During 2021, the company records the following cash flows: $61,000 Cash collected from customers Cash paid for: Salaries Supplies Rent Insurance Utilities Net cash flows $35, 100 3,100 4,100 6,100 2,100 50,500 $10,500 You are able to determine the following information: January 1, 2021 $20,100 Accounts Receivable Prepaid Insurance Supplies Salaries Payable December 31, 2021 $22,200 3,250 1,550 3,500 4,100 2,250 Required: Prepare an accrual basis income statement for the year ended December 31, 2021, by calculating accrual basis revenues and expenses.