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, 2018:

Cash receipts:

From customers...............................................................$675,000

Interest on note....................................................................4,000

Loan from a local bank........................................................100,000

Total cash receipts............................................................$779,000

Cash disbursements:

Purchase of merchandise....................................................$390,000

Annual insurance payment......................................................6,000

Payment of salaries and wages..............................................210,000

Dividends paid to shareholders...............................................10,000

Annual rent payment...........................................................24,000

Total cash disbursements...................................................$640,000

Selected balance sheet information:

Additional information:
1. On March 31, 2017, Zambrano lent a customer $50,000. Interest at 8% is payable annually on each March 31. Principal is due in 2021.
2. The annual insurance payment is paid in advance on April 30. The policy period begins on May 1.
3. On October 31, 2018, Zambrano borrowed $100,000 from a local bank. Principal and interest at 6% are due on October 31, 2019.
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 2018 (ignore income taxes).
2. Determine the following balance sheet amounts on December 31, 2018:
a. Prepaid insurance
b. Prepaid rent
c. Interest receivable
d. Interest payable

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12/31/17 $ 25,000 62,000 80,000 2,500 11,000 3.000 50,000 100,000 (40,000) 110,000 20,000 Cash Accounts receivable Inventory Prepaid insurance Prepaid rent $164,000 92,000 62,000 Note receivable Equipment Accumulated depreciation-equipment Accounts payable (for merchandise) Salaries and wages payable Note payable Interest payable 100,000 (50,000) 122,000 24,000 100,000