Connect Homework Saved Help Save & Exit Submit 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: $625,000 2,800 75,000 $702,800 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 es $380,000 4,800 280,000 12,800 19, een $615,800 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 Notes payable Interest payable 12/31/2020 12/31/2021 $ 20,eee $107,880 57,000 82,800 70,000 57,000 1,500 2 10,000 ? 2,100 ? 40,000 40,000 50,000 50,000 (35,000) (40,000) 185,000 112,000 19,000 22,100 75,000 B 2 Connect ework Sovod Help Save & Exit Submit Additional Information: 1. On March 31, 2020, Zambrano lent a customer $40,000. 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 $75,000 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: Complete this question by entering your answers in the tabs below. Required 1 Required 2 Prepare an accrual basis income statement for 2021 (ignore income taxes). (Other expe sign.) ZAMBRANO WHOLESALE CORPORATION Income Statement For the Year Ended December 31, 2021 0 0 0