Question: Hello, could you include all the processes? Thank you. Stanley and Jones Lawn Service Company (S&J) maintains its books on a cash basis. However, the
Hello, could you include all the processes? Thank you.

Stanley and Jones Lawn Service Company (S\&J) maintains its books on a cash basis. However, the company recently borrowed $300,000 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 able to determine the following information about accounts receivable, prepaid expenses, and accrued liabilities: 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 $19,000 for the year. Required: Prepare an accrual basis income statement for 2021. (Ignore income taxes.)
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