Check my work 4 Problem 2-12 (Algo) Cash versus accrual accounting (LO2-9] 25 paints 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: eBook Print References $690,000 4,240 115,000 $809,240 Cash receipts: From customers Interest on note Loan from a local bank Total cash receipts Cash disbursements: Purchase of merchandise Annual insurance payment Payment of salaries Dividends paid to shareholders Annual rent payment Total cash disbursements $393,000 6,360 213,000 10,000 25,500 $647,860 Selected balance sheet information: Cash Accounts receivable Inventory Prepaid insurance Prepaid rent Interest receivable Note receivable Equipment 12/31/2020 12/31/2021 $ 26,500 $187,880 63,500 95,000 B3,000 63,500 2,800 ? 11,300 ? 3,180 ? 53,000 115,000 115,000 53,000 Check my work 4 Selected balance sheet information: 25 points 12/31/2020 12/31/2021 $ 26,500 $187,880 63,500 95,000 83,000 63,500 2,800 2 11,300 2 3,180 2 53,000 53,000 115,000 115,000 (41,500) (53,000) 111,500 125,000 20, 300 24,600 115,000 0 Cash Accounts receivable Inventory Prepaid insurance Prepaid rent Interest receivable Note receivable Equipment Accumulated depreciation Accounts payable (for merchandise) Salaries payable Notes payable Interest payable eBook Print References 0 2 Additional information: 1. On March 31, 2020, Zambrano lent a customer $53,000. 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 $115,000 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: ----I-L-LL:- ---L--L..--I---- :-LL--L-L-I-... Check my work 4 Required 1 Required 2 Prepare an accrual basis income statement for 2021 (ignore income taxes). (Other expenses should be indicated with a minus sign.) 25 points ZAMBRANO WHOLESALE CORPORATION Income Statement For the Year Ended December 31, 2021 eBook Print References Check my work 4 4. Annuai rent on the company's facilities is paid in advance on June 30. ine rental period pegins 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: 25 points Complete this question by entering your answers in the tabs below. eBook Print Required 1 Required 2 References Determine the following balance sheet amounts on December 31, 2021: Prepaid insurance Prepaid rent c. Interest receivable d. Interest payable
