Zambrano Wholesale Corporation maintains its records on a cash basis. At the end of each year the company?s accountant obtains the necessary information to prepare accrual basis financial statements. The following cash flows occurred during the year ended December 31, 2021:

Cash receipts:From customers ..........................$ 675,000Interest on note ..................................4,000Loan from a local bank ..................100,000Total cash receipts ......................$ 779,000

Cash disbursements:Purchase of merchandise .............$ 390,000Annual insurance payment ..................6,000Payment of salaries ..........................210,000Dividends paid to shareholders ........10,000Annual rent payment ..........................24,000Total cash disbursements .............$ 640,000

Selected balance sheet information:

Additional information:1. On March 31, 2020, Zambrano lent a customer $50,000. Interest at 8% is payable annually on each March 31. Principal is due in 2024.2. The annual insurance payment is paid in advance on April 30. The policy period begins on May 1.3. On October 31, 2021, Zambrano borrowed $100,000 from a local bank and signed a note promising repayment. Principal and interest at 6% are due on October 31, 2022.4. Annual rent on the company?s facilities is paid in advance on June 30. The rental period begins on July 1.

Required:1. Prepare an accrual basis income statement for 2021 (ignore income taxes).2. Determine the following balance sheet amounts on December 31, 2021:a. Prepaid insuranceb. Prepaid rentc. Interest receivabled. Interest payable

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12/31/2020 12/31/2021 $ 164,000 92,000 25,000 62,000 Cash Accounts receivable Inventory Prepaid insurance Prepaid rent 80,000 62,000 2,500 11,000 ? Interest receivable 3,000 ? Notes receivable 50,000 50,000 Equipment Accumulated depreciation Accounts payable (for merchandise) 100,000 100,000 (40,000) (50,000) 110,000 122,000 24,000 Salaries payable Notes payable Interest payable 20,000 -0- 100,000 -0-