Bus 311 Intermediate Accounting Chapter 02 Excel HW (2 of ) Due Date Monday, September 7, 2020 by 11:59 pm post in iLearn) Scan House, Inc. prepares financial records during the year on a cash basis. As the newly appointed controller, you have been asked to prepare the annual financial statement on an accrual basis. The following cash flows occurred during the year ended December 31, 2020: Cash receipts: From customers $765,000 Interest on note 3,000 Loan from a local bank 200,000 Total cash receipts $968.XX Cash disbursements Purchase of merchandise $450,000 Annual insurance payment 12,000 Payment of salaries and wages 250,000 Dividends paid to shareholders 25,000 Annual rent payment 36.000 Total cash disbursements $773.000 Selected balance sheet information: 12/31/19 12/31/20 Cash $25,000 $220,000 Accounts receivable 62,000 115,000 Inventory 80,000 50.000 Prepaid insurance 2,500 ? Prepaid rent 11,000 ? Interest receivable 2,250 ? Note receivable 60,000 GO,000 Equipment 100,000 100,000 Accumulated depreciation- quipment (50,000) (80,000) Accounts payable for merchandise) 110,000 92,000 Salaries and wages payable 20,000 14,000 Note payable 200,000 Interest payable -0- ? Additional Information: 1. On March 31, 2019, Scan House lent a customer $60,000. Interest at 5% is payable annually on each March 31. Principal is due in 2025. 2. The annual insurance payment was paid in advance on July 31. The policy period begins on August 1 [continued) 3. On April 30, 2020, Scan House borrowed $200,000 from a local bank. Principal and interest at 6% are due on April 30, 2021. 4. Annual rent on the company's facilities is paid in advance on March 31. The rental period begins on April 1. Required: 1. Prepare an accrual basis income statement for 2020 (ignore income taxes) 2. Determine the following balance sheet amounts on December 31, 2020: ... Prepaid insurance b. Prepaid rent c. Interest receivable. d Interest payable Reminder. Continue using the excel HW policies for preparing your solutions to the above questions, including the standard four line headine