Part 2 Problems 1. Jets Corp. maintains its books on a cash basis. However, the company obtained a loan of $150,000 from a local bank. The bank requires Jets Corp. to provide annual financial statements prepared on an accrual basis. The company compiled the following information related to its operations for the year 2021. Accounts receivable January 01, 2021 $ 15,000 December 31, 2021 $22,000 17000 Supplies 1,500 2,000 500 Prepaid rent 6,000 2,000 1000 Prepaid insurance 3,900 2,400 1500 Deferred revenue 4,000 2,500 500 Salaries payable 12,000 9,000 3000 Accrued liabilities (for miscellaneous expenses) 13,500 9,000 500 During 2021, the following cash flows were recorded: Cash receipts from services performed Cash paid to employees for salaries Cash paid for supplies Cash paid for rent Cash paid for insurance Cash paid for miscellaneous expenses Cash paid for equipment, 10 year useful life December 31, 2021 $ 325,000 170,000 32,000 20,000 7,500 22,000 50,000