Raintree Corporation maintains its records on a cash basis. At the end of each year the companys accountant obtains the necessary information to prepare accrual basis financial statements. The following cash flows occurred during the year ended December 31, 2016

Cash receipts:
From customers	$	450,000
Interest on note		3,000
Issue of common stock		50,000
Total cash receipts	$	503,000
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		50,000			?
Note receivable		1,500			50,000
Equipment		150,000			150,000
Accumulated depreciationequipment		(40,000	)		(55,000	)
Accounts payable (for merchandise)		50,000			62,000
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 companys facilities is paid in advance on September 30.

Required:
1.	Prepare an accrual basis income statement for 2016 (ignore income taxes).

2.	Determine the following balance sheet amounts on December 31, 2016

A. Interest Receivable

B. Prepaid Insurance

C. Prepaid Rent