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, 2024:

Additional information:
1. On March 31, 2023, Zambrano lent a customer $50,000. Interest at 8% is payable annually on each March 31. Principal is due in 2027.
2. The annual insurance payment is paid in advance on April 30. The policy period begins on May 1.
3. On October 31, 2024, Zambrano borrowed $100,000 from a local bank and signed a note promising repayment. Principal and interest at 6% are due on October 31, 2025.
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 2024 (ignore income taxes).
2. Determine the following balance sheet amounts on December 31, 2024:
a. Prepaid insurance
b. Prepaid rent
c. Interest receivable
d. Interest payable

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Cash receipts: From customers Interest on note Loan from a local bank Total cash receipts Cash disbursements: Purchase of inventory Annual insurance payment Payment of salaries Dividends paid to shareholders Annual rent payment Total cash disbursements $675,000 4,000 100,000 $779,000 $390,000 6,000 210,000 10,000 24,000 $640,000