Prepare an accrual basis income statement for 2021
Cash- $164000
Accounts Receivable- 92,000
Inventory- 62,000
Prepaid insurance- ?
Prepaid rent- ?
Interest receivable- ?
Notes receivable- 50,000
Equipment- 100,000
Accumulated depreciation- (50,000)
Accounts payable (for merchandise)- 122,000
Salaries payable- 24,000
Notes payable- 100,000
Interest payable- ?
Additional info:
1. On March 31, 2020 Zambrano lent a customer $50,000. Interest 8& is payable anually on each March 31.
2. The annual insurance payment is paid in advance on April 30. The policy begins on May 1.
3. On October 31, 2021, Zambrano borrowed $100,000 from a local bank and signed a note promising repayment. Principle and interest at 6% are due on October 21, 2022.
4. Annual rent on the company's facilities is paid in advance on June 30. The rental period begins on July 1.
