maintains its records on a cash basks. At the end of each year the companys necessary information to prepare accrual basis financial statements. The following 1.) Raintree Corporation maintains its records of accountant obtains the necessary infor cash flows occurred durine the year ended December 31, 2016 Cash receipts: From customers Interest on note Issue of common stock 50.000 Total cash receipts $503.000 $450,000 3,000 Cash disbursements Purchase of merchandise $220.000 Annual Insurance payment 9,000 Payment of salaries 180,000 Dividends paid to shareholders 6,000 Annual rent payment 12.000 Total cash disbursements $427.000 Selected balance sheet information: 12/31/15 12/31/16 Cash $25,000 $101.000 Accounts receivable 42.000 70,000 Inventory 60,000 82,000 Prepaid Insurance 2.000 Prepaid rent 7,000 Interest receivable 1.500 Note receivable 50.000 50.000 Equipment 150.000 150.000 Accumulated (40,000) (55,000) depreciation equipment Accounts payable (for 50,000 62.000 merchandise) Salaries payable 20.000 28,000 Common stock 200,000 250,000 Additional information: 1. On June 30, 2015, Raintree lent a customer $50,000. Interest at 6% is payable annually on each June 30. Principal is due in 2019. 2. The annual Insurance payment is made in advance on March 31. 3. Annual rent on the company's facilities is paid in advance on September 30. Required: Determine the following reported balances on December 31, 2016: a. Sales Revenue b. Interest Revenue c. Cost of Goods Sold d. Prepaid Rent Name: 1a) Journal Entries: T-Account: Answer: Sales Revenue $ 1b) Journal Entries: T-Account: Answer: Interest Revenue $ 1e) Journal Entries T-Accounts: Answer: Cost of Goods Sold $ 1d) Journal Entries: T-Account: Answer: Prepaid Rents