Prepare an accrual-basis income statement

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Reference no: EM131519971

Question: 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 accrualbasis accounting as part of the creditworthiness verification. During 2012, the company records the following cash flows:

You are able to determine the following information:

In addition, depreciation on the company's equipment is $8,000 for the year.

Required: Prepare an accrual-basis income statement for the year ended December 31, 2012. (Ignore income taxes.)

Reference no: EM131519971

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