HA NEXT Problem 4-6A (Part Level Submission) Near the end of its first year of operations, December 31, 2018, Creative Designs Ltd. approached the local bank for a $22,000 loan and was asked to submit financial statements prepared on an accrual basis. Although the company kept no formal accounting records, it did maintain a record of cash receipts and payments. The following information is available for the year ended December 31: Cash Payments Cash Receipts $ 24,000 158,200 Issue of common shares Fees earned Equipment Supplies Rent Insurance Income tax Advertising Salaries Dividends declared $ 36,500 8,000 9,500 3,840 5,900 6,200 59,600 10,200 $150,740 $102,200 Additional information: 1. Fees from design work earned but not yet collected amounted to $2,400. 2. The equipment was purchased at the beginning of January and has an estimated six-year useful life. The company uses straight-line depreciation 3. Supplies on hand on December 31 were $1,330. 4. Rent payments included a $1,500 per month rental fee and a $2,500 deposit that is refundable at the end of the two-year lease. (Hint: Use the Prepaid Rent account fintha mafundable dannet NIE BACK 4. Rent payments included a $1,500 per month rental fee and a $2,500 deposit that is refundable at the end of the two-year lease. (Hint: Use the Prepaid Rent account for the refundable deposit.) 5. The insurance was purchased on February 1 for a one-year period expiring January 31, 2019. 6. Salaries earned for the last four days in December and to be paid in January 2019 amounted to $3,150. 7. At year end, it was determined that an additional $7,500 is owed for income tax. (a) Calculate the cash balance at December 31. Cash Balance $