Zambrano Wholesale Corporation maintains its records on a cash basis. At the end of each year...
Fantastic news! We've Found the answer you've been seeking!
Question:
Transcribed Image Text:
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: Cash receipts: From customers Interest on note Loan from a local bank $690,000 4,240 115,000 Total cash receipts $809,240 Cash disbursements: Purchase of merchandise $393,000 Annual insurance payment Payment of salaries Dividends paid to shareholders Annual rent payment 6,360 213,000 10,000 25,500 Total cash disbursements $647,860 Selected balance sheet information: 12/31/2020 12/31/2021 $ 26,500 63,500 83,000 2,800 11,300 3,180 53,000 115,000 Cash $187,880 95,000 63,500 Accounts receivable Inventory Prepaid insurance Prepaid rent Interest receivable Note receivable 53,000 Equipment 115,000 Check my work 4 Selected balance sheet information: 12/31/2020 12/31/2021 $ 26,500 63,500 83,000 2,800 11,300 3,180 53,000 115,000 (41,500) 111,500 20,300 Cash Accounts receivable $187,880 95,000 63,500 25 Inventory Prepaid insurance Prepaid rent Interest receivable Note receivable Equipment Accumulated depreciation Accounts payable (for merchandise) Salaries payable points 53,000 115,000 eBook (53,000) 125,000 24,600 115,000 Print References Notes payable Interest payable Additional information: 1. On March 31, 2020, Zambrano lent a customer $53,000. 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 $115,000 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 (lgnore Income taxes). 2. Determine the following balance sheet amounts on December 31, 2021: < Prev 4 of 4 Next> Check my work 4 Required 1 Required Z Prepare an accrual basis income statement for 2021 (ignore income taxes). (Other expenses should be indicated with a minus sign.) 25 points ZAMBRANO WHOLESALE CORPORATION Income Statement eBook For the Year Ended December 31, 2021 Print References < Prev 4 of 4 Next > Check my work 4 4. Annuai rent on tne company's raciities is paia in aavance on June su. ine rentai perioa pegins on Juiy 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: 25 points Complete this question by entering your answers in the tabs below. eBook Print Required 1 Required 2 References Determine the following balance sheet amounts on December 31, 2021: Prepaid insurance Prepaid rent c. Interest receivable d. Interest payable < Required 1 Required 2 > < Prev 4 of 4 Next > 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: Cash receipts: From customers Interest on note Loan from a local bank $690,000 4,240 115,000 Total cash receipts $809,240 Cash disbursements: Purchase of merchandise $393,000 Annual insurance payment Payment of salaries Dividends paid to shareholders Annual rent payment 6,360 213,000 10,000 25,500 Total cash disbursements $647,860 Selected balance sheet information: 12/31/2020 12/31/2021 $ 26,500 63,500 83,000 2,800 11,300 3,180 53,000 115,000 Cash $187,880 95,000 63,500 Accounts receivable Inventory Prepaid insurance Prepaid rent Interest receivable Note receivable 53,000 Equipment 115,000 Check my work 4 Selected balance sheet information: 12/31/2020 12/31/2021 $ 26,500 63,500 83,000 2,800 11,300 3,180 53,000 115,000 (41,500) 111,500 20,300 Cash Accounts receivable $187,880 95,000 63,500 25 Inventory Prepaid insurance Prepaid rent Interest receivable Note receivable Equipment Accumulated depreciation Accounts payable (for merchandise) Salaries payable points 53,000 115,000 eBook (53,000) 125,000 24,600 115,000 Print References Notes payable Interest payable Additional information: 1. On March 31, 2020, Zambrano lent a customer $53,000. 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 $115,000 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 (lgnore Income taxes). 2. Determine the following balance sheet amounts on December 31, 2021: < Prev 4 of 4 Next> Check my work 4 Required 1 Required Z Prepare an accrual basis income statement for 2021 (ignore income taxes). (Other expenses should be indicated with a minus sign.) 25 points ZAMBRANO WHOLESALE CORPORATION Income Statement eBook For the Year Ended December 31, 2021 Print References < Prev 4 of 4 Next > Check my work 4 4. Annuai rent on tne company's raciities is paia in aavance on June su. ine rentai perioa pegins on Juiy 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: 25 points Complete this question by entering your answers in the tabs below. eBook Print Required 1 Required 2 References Determine the following balance sheet amounts on December 31, 2021: Prepaid insurance Prepaid rent c. Interest receivable d. Interest payable < Required 1 Required 2 > < Prev 4 of 4 Next >
Expert Answer:
Related Book For
Intermediate Accounting
ISBN: 978-0077400163
6th edition
Authors: J. David Spiceland, James Sepe, Mark Nelson
Posted Date:
Students also viewed these finance questions
-
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....
-
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....
-
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 accompanying data are consistent with summary statistics that appeared in the paper Shape of Glass and Amount of Alcohol Poured: Comparative Study of Effect of Practice and Concentration (...
-
Refer to the physical fitness data given in Table D.5 of the Data Bank. Use MINITAB or some other package program to: (a) Find a 97% large sample confidence interval for the pretest number of situps....
-
Discuss at what point in time a theft loss generally is recognized?
-
Investment Associates, Inc. (IA)2 started as a small firm in 2001 with four employees plus its owner, Jim Tower. The company specialized in providing financial investment and tax advice to its...
-
Write an address book program that stores your contacts' names and their email addresses. The names and email addresses are originally stored in a file called phonebook.in, in the format: Harry...
-
A project has an initial outlay of $2,585. It has a single payoff at the end of year 2 of $9,017. What is the profitability index (PI) of the project, if the company's cost of capital is 14.00...
-
Which series has the highest beta. BraveNewCoin Liquid Index for Bitcoin 1D BNC Trading Brave Ne Yellow Green Blue Orange
-
5. The population, P, of penguins in a certain region of Antarctica can be modelled by the relation P = P(2)90, where t is the time, measured in months and P, is the initial number of penguins. a)...
-
What are some other rights do you have that surprised you? Are there limitations? Summarize freedom of religion. How might that come up in a business setting? How about privacy in an employmen?
-
Two substances A and B have equal mass, but substance B has a higher specific heat than substance A . When the same amount of heat is supplied to both substances in separate thermally insulated...
-
Blossom Company has the following information available for September 2022. Unit selling price of video game consoles $430 Unit variable costs $301 Total fixed costs $39,990 Units sold 600 (a)...
-
Bonita Co. sells product P-14 at a price of $47 a unit. The per-unit cost data are direct materials $15, direct labour $10, and overhead $12 (75% variable). Bonita Co. has sufficient capacity to...
-
Sandhill Park la a private campling around near the Moune Miguel Recreation Ares it has compiled the following Frencial Information as of December 31, 2027. Service revenue (from camping fees...
-
28. Let G be the grammar SaSb B BbB b. Prove that L(G)= {a"b" |0n
-
Without solving, determine the character of the solutions of each equation in the complex number system. 3x 2 3x + 4 = 0
-
The following condensed income statements of the Jackson Holding Company are presented for the two years ended December 31, 2011 and 2010: On October 15, 2011, Jackson entered into a tentative...
-
Discuss the terms relevance and faithful representation as they relate to financial accounting information.
-
BA has an account entitled sales in advance of carriage. Explain the purpose of that account. Would transactions of this type be handled similarly under U.S. GAAP? What is the amount of sales in...
-
The following data from Lyre Ltd's accounts relates to two assets at 30 June 2023. At 30 June 2023 Lyre Ltd decides to adopt the revaluation model for both these assets. On this date land has a fair...
-
On 1 January 2023, Blue Jay Ltd revalued land from \(\$ 300000\) to \(\$ 500000\). On 1 January 2024, the company subsequently revalued the land to \(\$ 420000\). And on 1 January 2025 , the company...
-
Seagull Ltd purchased land for use as its corporate headquarters. A small factory that was on the land when it was purchased was torn down before construction of the office building began....
Study smarter with the SolutionInn App