This window shows your responses and what was marked correct and incorrect from your previous attempt. 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 ed $510,000 3,720 50.000 $563,720 Cash receipts Pron 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 $232,000 9,000 192,000 8.000 12.000 $453,000 Selected balance sheet information: 12/31/2020 $ 37,000 54,000 72,000 3.000 8,000 Cash Accounts receivable Inventory Prepaid insurance Prepaid rent Interest receivable Sote receivable Ement Accumulated depreciation equipment Accounts payable for merchandise Salaries payable Common stock Dividends 62,000 174,000 (52,000) 62.000 32,000 320,000 12/31/2021 $113,000 94.000 106,000 2 ? 62.000 174,000 179.0001 52.000 370.000 11,000 Additional information og Dl DO 741 A & * ) 3 % 5 4 6 7 8 ( 9 0 E R T T Y U OP { [ D F G H J K L X C V B NM ? This window shows your responses and what was marked correct and incorrect from your previous attempt. Additional information 1. On June 30, 2020, Raintree lent a customer $62,000. Interest at 6% 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). 658,000 (222.000) 436,000 RAINTREE CORPORATION Income Statement For the Year Ended December 31, 2021 Sales revenue $ Cost of goods sold Gross proft Operating expenses Insurance expense Salaries expense Rent expense Depreciation expense Operating income Operating expenses Operating income Operating revenge Interest revenue Net Income 5 OOOOOOOO OOOO 0 436.000 OOOOO 436,000 30 * 28 od DII FS $ % ) 3 & 7 4 5 6 8 9 0 W E R T Y U 0 P S D F. G H J K L C V B NM *Red text indicates no response was 2. Determine the following balance sheet amounts on December 31, 2021: a b. Interest receivable Prepaid insurance Prepaid rent $ 1,860 5,280 6,000 C. MacBook 000 so F2 F2 DOO F4 F5 DI FB F6 F7 % A & # 3 4 5 6 7 8 V E R T Y . D G H J