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: $465,000 2,650 50.000 $517,650 45 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 $223,000 7.000 183,000 9,000 15,000 $437,000 Selected balance sheet Information: Cash Accounts receivable Inventory Drepaid insurance Prepaid rent Interest receivable Note receivable Equipment Accumulated depreciation-equipment Accounts payable for merchandise) Salaries payable Common stock Dividendo 12/31/2020 $ 28,000 45,000 63,000 5,000 7,000 1,325 53,000 156,000 (43,000) 53,000 23,000 230,000 1273972021 $104,000 76,000 88,000 7 7 2 53,000 156,000 (61,000) 68,000 34,000 280,000 7,000 Additional information: 1. On June 30, 2020, Raintree lent a customer $53,000. 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 25:19 0 0 0 $ 0 2. Determine the following balance sheet amounts on December 31, 2021: Interest receivable b. Prepaid insurance C Prepaid rent MacBook Pro