Zambrano Wholesale 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: $685,000 3,640 110,000 $798,640 Cash receipts: From customers Interest on note Loan from a local bank Total cash receipts Cash disbursements: Purchase of merchandise Annual insurance payment Payment of salaries Dividends paid to shareholders Annual rent payment Total cash disbursements $392,000 6,240 212,000 12,000 25,000 $647,240 Selected balance sheet information: Cash Accounts receivable Inventory Prepaid insurance Prepaid rent Interest receivable Note receivable Equipment Accumulated depreciation Accounts payable (for merchandise) Salaries payable 12/31/2020 12/31/2021 $ 26,000 $177,480 63,000 94,000 82,000 63,000 2,700 11,200 2,730 52,000 52,000 110,eee 110, eee (41,000) (52,000) 111,000 124,000 20,200 24,400 Notes payable @ 110, eee Interest payable Additional information: 1. On March 31, 2020, Zambrano lent a customer $52,000. Interest at 7% is payable annually on each March 31. Principal is due in 2024 2. The annual insurance payment is paid in advance on April 30. The policy period begins on May 1 3. On October 31, 2021, Zambrano borrowed $110,000 from a local bank and signed a note promising repayment. Principal and Interest at 6% are due on October 31, 2022 4. Annual rent on the company's facilities is paid in advance on June 30. The rental period begins on July 1. Required: 1. Prepare an accrual basis income statement for 2021 ignore income taxes). 2. Determine the following balance sheet amounts on December 31, 2021: Required 1 Required 2 Prepare an accrual basis income statement for 2021 (ignore income taxes). ( sign.) ZAMBRANO WHOLESALE CORPORATION Income Statement For the Year Ended December 31, 2021 Required Required 1 Required 2 Determine the following balance sheet amo a. Prepaid insurance b. Prepaid rent c. Interest receivable d. Interest payable