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Raintree 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
Raintree 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 $515,000 3,150 50,000 $568,150 Cash receipts: From customers Interest on note Issue of common stock Total cash receipts Cash disbursements: Purchase of merchandise Annual Insurance payment Payment of salaries Dividends paid to shareholders Annual rent payment Total cash disbursements $233,000 8.000 193,000 9,000 13,000 $456,000 Selected balance sheet Information: 12/31/2021 $ 114,000 96,00 109,000 Cash Accounts receivable Inventory Prepaid insurance Prepaid rent Interest receivable Note receivable Equipment Accumulated depreciation quipment Accounts payable for merchandise Salarles payable Common stock Dividend 12/31/2020 $ 38,000 55.000 73,000 4,000 71,00 1,575 63.000 176.000 (53 000) 63,000 33,000 330,000 63.000 176.000 (81,000) 88,000 54.000 380,000 12,000 Additional Information 1. On June 30.2020. Raintree lent a customer $63.000. Interest at 5% is payable annually on each June 30, Principal is due in 2024 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, Additional Information 1 On June 30, 2020, Raintree lent a customer $63.000. Interest at 5% is payable annually on each June 30. Principal is due in 2024 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: 1. Prepare an accrual basis Income statement for 2021 (Ignore Income taxes). RAINTREE CORPORATION Income Statement For the Year Ended December 31, 2021
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