Prepare an accrual-basis income statement

Reference no: EM131519904

Question: Horned Frogs Fine Cooking maintains its books using cash-basis accounting. However, the company recently borrowed $50,000 from a local bank, and the bank requires the company to provide annual financial statements prepared using accrualbasis accounting as part of the creditworthiness verification. During 2012, the company records the following cash flows:

938_Cash collect.png

You are able to determine the following information:

In addition, depreciation on the company's building is $6,000 for the year.

Required: Prepare an accrual-basis income statement for 2012. (Ignore income taxes.)

Reference no: EM131519904

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