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Zambrano Wholesale Corporation maintains its records on a cash basis. At the end of each year the companys 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	$	645,000
Interest on note		3,960
Loan from a local bank		95,000
Total cash receipts	$	743,960
Cash disbursements:
Purchase of merchandise	$	384,000
Annual insurance payment		5,280
Payment of salaries and wages		204,000
Dividends paid to shareholders		11,000
Annual rent payment		21,000
Total cash disbursements	$	625,280

Selected balance sheet information:

	12/31/17			12/31/18
Cash	$	22,000		$	140,680
Accounts receivable		59,000			86,000
Inventory		74,000			59,000
Prepaid insurance		1,900			?
Prepaid rent		10,400			?
Interest receivable		2,970			?
Note receivable		44,000			44,000
Equipment		70,000			70,000
Accumulated depreciationequipment		(37,000	)		(44,000	)
Accounts payable (for merchandise)		107,000			116,000
Salaries and wages payable		19,400			22,900
Notes payable		0			95,000
Interest payable		0			?

Additional information:

1. On March 31, 2017, Zambrano lent a customer $44,000. Interest at 9% 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 $95,000 from a local bank. Principal and interest at 6% are due on October 31, 2019.

4. Annual rent on the companys 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). (Other expenses should be indicated with a minus sign.) 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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