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 December 31, 2024 Cash receipts: From customers Interest on note Loan from a local bank Total cash receipts Cash disbursements: Purchase of inventory Annual insurance payment Payment of salaries Dividends paid to shareholders Annual rent payment Total cash disbursements $ 655,000 3,220 120,000 $ 778,220 $ 386,000 5,520 206,000 12,000 22,000 $ 631,520 year ended Selected balance sheet information: Cash Accounts receivable Inventory Prepaid insurance 76,000 12/31/2023 $ 23,000 60,000 12/31/2024 $ 169,700 88,000 60,000 2,100 ? Prepaid rent 10,600 ? Interest receivable 2,415 ? Note receivable 46,000 46,000 Equipment 80,000 80,000 Accumulated depreciation (38,000) (46,000) Accounts payable (for inventory) 108,000 118,000 Salaries payable 19,600 23,300 Notes payable 0 120,000 Interest payable 0 ? Additional information: Additional information: 1. On March 31, 2023, Zambrano lent a customer $46,000. Interest at 7% is payable annually on each March 31. Principal is due in 2027 2. The annual insurance payment is paid in advance on April 30. The policy period begins on May 1. 3. On October 31, 2024, Zambrano borrowed $120,000 from a local bank and signed a note promising repayment Principal and interest at 6% are due on October 31, 2025. 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 2024 (ignore income taxes). 2. Determine the following balance sheet amounts on December 31, 2024 Prepare an accrual basis income statement for 2024 (ignore income taxes). Note: Other expenses should be indicated with a minus sign. Sales revenue ZAMBRANO WHOLESALE CORPORATION Income Statement For the Year Ended December 31, 2024 Gross profit Operating expenses: Rent expense Insurance expense Depreciation expense Total operating expenses 0 0 Operating income Other income (expense): Net income 0 $ 0 0 Required 1 Required 2 Determine the following balance sheet amounts on December 31, 2024: a. Prepaid insurance b. Prepaid rent c. Interest receivable d. Interest payable