Presented below is the comparative statement of income, prepared on a cash basis, for Ener-Jet Ltd. for the past two years. The manager is puzzled by the fact that net income was lower in 2023 than 2022. Ener-Jet LTD. Statement of Income, Cash Basis Years Ended December 31 2023 2022 Service revenue ......................................................................... $350,000 $365,000 Expenses Salaries expense ................................................................. 200,000 190,000 Office expense .................................................................... 54,000 55,000 Repairs and maintenance expense ..................................... 20,000 15,000 Interest expense .................................................................. 15,000 2,000 Total expenses ........................................................................... 289,000 262,000 Income before income tax .......................................................... 61,000 103,000 Income tax expense ................................................................... 24,400 41,200 Net income ................................................................................. $ 36,600 $ 61,800 In speaking with the manager, you gather the following information: 1. The company borrowed $200,000 on June 1, 2022 and repaid the amount with interest on June 1, 2023. The interest rate was 6%. The journal entry to record the repayment on June 1, 2023, was: Bank Loan Payable ............................................. 200,000 Interest Expense .................................................. 12,000 Cash ............................................................. 212,000 2. A customer made a deposit of $15,000 on December 1, 2022, for services to be performed in January 2023. The journal entry made on December 1, 2022, was: Cash .................................................................... 15,000 Service Revenue .......................................... 15,000 3. A bill for $4,000 maintenance work done in December 2022 was paid on January 15, 2023. The journal entry to record the payment in 2023 was: Repairs and Maintenance Expense ..................... 4,000 Cash ............................................................. 4,000