(Solved by Humans)-Problem 2-12 Cash versus accrual accounting [LO2-8] Zambrano Wholesale Corporation maintains its rec

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Problem 2-12 Cash versus accrual accounting [LO2-8] Zambrano Wholesale Corporation maintains its records on a cash basis. At the end of each year the companyA????1s accountant obtains the necessary information to prepare accrual basis financial statements. The following cash flows occurred during the year ended December 31, 2013:      Cash receipts:       From customers $ 660,000       Interest on note 3,760       Loan from a local bank 115,000              Total cash receipts $ 778,760      Cash disbursements:       Purchase of merchandise $ 387,000       Annual insurance payment 5,640       Payment of salaries 207,000       Dividends paid to shareholders 11,000       Annual rent payment 22,500              Total cash disbursements $ 633,140    Selected balance sheet information: 12/31/12 12/31/13   Cash $ 23,500 $ 169,120   Accounts receivable 60,500 89,000   Inventory 77,000 60,500   Prepaid insurance 2,200 ?   Prepaid rent 10,700 ?   Interest receivable 2,820 ?   Note receivable 47,000 47,000   Equipment 85,000 85,000   Accumulated depreciationA????1equipment (38,500 ) (47,000 )   Accounts payable (for merchandise) 108,500 119,000   Salaries payable 19,700 23,500   Note payable 0 115,000   Interest payable 0 ? Additional information: 1. On March 31, 2012, Zambrano lent a customer $47,000. Interest at 8% is payable annually on each March 31. Principal is due in 2016. 2. The annual insurance payment is made in advance on April 30. The policy period begins on May 1. 3. On October 31, 2013, Zambrano borrowed $115,000 from a local bank. Principal and interest at 6% are due on October 31, 2014. 4. Annual rent on the companyA????1s facilities is paid in advance on June 30. The rental period begins on July 1. Required: 1. Prepare an accrual basis income statement for 2013 (ignore income taxes).            2. Determine the following balance sheet amounts on December 31, 2013: