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, 2018:

Cash receipts:
From customers	$	520,000
Interest on note		4,000
Issue of common stock		64,000
Total cash receipts	$	588,000
Cash disbursements:
Purchase of merchandise	$	234,000
Annual insurance payment		7,000
Payment of salaries		194,000
Dividends paid to shareholders		7,000
Annual rent payment		14,000
Total cash disbursements	$	456,000

Selected balance sheet information:

	12/31/17			12/31/18
Cash	$	39,000		$	115,000
Accounts receivable		56,000			98,000
Inventory		74,000			110,000
Prepaid insurance		2,000			?
Prepaid rent		9,000			?
Interest receivable		2,900			?
Note receivable		64,000			64,000
Equipment		178,000			178,000
Accumulated depreciationequipment		(54,000	)		(83,000	)
Accounts payable (for merchandise)		64,000			90,000
Salaries payable		34,000			56,000
Common stock		340,000			390,000

Additional information:

On June 30, 2017, Raintree lent a customer $64,000. Interest at 7% is payable annually on each June 30. Principal is due in 2021.

The annual insurance payment is made in advance on March 31.

Annual rent on the companys facilities is paid in advance on September 30.

Required: 1. Prepare an accrual basis income statement for 2018 (ignore income taxes).

2. Determine the following balance sheet amounts on December 31, 2018: