Zambrano Wholesale 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	$	650,000
Interest on note		3,600
Loan from a local bank		125,000
Total cash receipts	$	778,600
Cash disbursements:
Purchase of merchandise	$	385,000
Annual insurance payment		5,400
Payment of salaries		205,000
Dividends paid to shareholders		10,000
Annual rent payment		21,500
Total cash disbursements	$	626,900

Selected balance sheet information:

	12/31/2020			12/31/2021
Cash	$	22,500		$	174,200
Accounts receivable		59,500			87,000
Inventory		75,000			59,500
Prepaid insurance		2,000			?
Prepaid rent		10,500			?
Interest receivable		2,700			?
Note receivable		45,000			45,000
Equipment		75,000			75,000
Accumulated depreciation		(37,500	)		(45,000	)
Accounts payable (for merchandise)		107,500			117,000
Salaries payable		19,500			23,100
Notes payable		0			125,000
Interest payable		0			?

Additional information:

1. On March 31, 2020, Zambrano lent a customer $45,000. Interest at 8% 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 $125,000 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 companys 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:

Prepare an accrual basis income statement for 2021 (ignore income taxes). (Other expenses should be indicated with a minus sign.)

ZAMBRANO WHOLESALE CORPORATION
Income Statement
For the Year Ended December 31, 2021

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

a.	Prepaid insurance
b.	Prepaid rent
c.	Interest receivable
d.	Interest payable