Zambrano Wholesale Corporation maintains its annal on a banknote basis. At the end of anniversary year the company’s accountant obtains the all-important advice to adapt accretion base banking statements. The afterward banknote flows occurred during the year concluded December 31, 2021:
Cash receipts:From customers$720,000Interest on note4,720Loan from a bounded bank80,000Total banknote receipts$804,720Cash disbursements:Purchase of merchandise$399,000Annual allowance payment7,080Payment of salaries219,000Dividends paid to shareholders10,000Annual hire payment28,500Total banknote disbursements$663,580
Selected antithesis area information:
12/31/202012/31/2021Cash$29,500$170,640Accounts receivable66,500101,000Inventory89,00066,500Prepaid insurance3,400?Prepaid rent11,900?Interest receivable3,540?Note receivable59,00059,000Equipment145,000145,000Accumulated depreciation(44,500)(59,000)Accounts payable (for merchandise)114,500131,000Salaries payable20,90025,800Notes payable080,000
On March 31, 2020, Zambrano lent a chump $59,000. Absorption at 8% is payable annually on anniversary March 31. Principal is due in 2024.
The anniversary allowance acquittal is paid in beforehand on April 30. The action aeon begins on May 1.
On October 31, 2021, Zambrano adopted $80,000 from a bounded coffer and active a agenda able repayment. Principal and absorption at 6% are due on October 31, 2022.
Annual hire on the company’s accessories is paid in beforehand on June 30. The rental aeon begins on July 1.
1. Adapt an accretion base assets account for 2021 (ignore assets taxes).
2. Determine the afterward antithesis area amounts on December 31, 2021:
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