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, 2021:

Cash receipts:
From customers	$	535,000
Interest on note		3,350
Issue of common stock		50,000
Total cash receipts	$	588,350
Cash disbursements:
Purchase of merchandise	$	237,000
Annual insurance payment		7,000
Payment of salaries		197,000
Dividends paid to shareholders		9,000
Annual rent payment		17,000
Total cash disbursements	$	467,000

Selected balance sheet information:

	12/31/2020				12/31/2021
Cash	$	42,000			$	118,000
Accounts receivable		59,000				104,000
Inventory		77,000				116,000
Prepaid insurance		4,000				?
Prepaid rent		9,000				?
Interest receivable		1,675				?
Note receivable		67,000				67,000
Equipment		184,000				184,000
Accumulated depreciationequipment		(57,000	)			(89,000	)
Accounts payable (for merchandise)		67,000				96,000
Salaries payable		37,000				62,000
Common stock		370,000				420,000
Dividends		0				14,000

Additional information:

1. On June 30, 2020, Raintree lent a customer $67,000. 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 companys facilities is paid in advance on September 30.

Required: 1. Prepare an accrual basis income statement for 2021 (ignore income taxes).

2. Determine the following balance sheet amounts on December 31, 2021: