Question

complete please

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 company's 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: $680,000 4,080 105,000e From customers Interest on note Loan from a local bank Total cash receipts $789,080 Cash disbursements: Purchase of merchandise $391,000 6,120 211,000 11,000 24,500 Annual insurance payment Payment of salaries and wages Dividends paid to shareholders Annual rent payment Total cash disbursements $643,620 Selected balance sheet information: 12/31/17 12/31/18 $ 25,500 $170,960 62,500 81,000 2,600 11,100 3,060 51,000 105,000 (40,500 (51,000) Cash Accounts receivable 93,000 62,500 Inventory Prepaid insurance Prepaid rent Interest receivable Note receivable 51,000 Equipment Accumulated depreciation-equipment Accounts payable (for merchandise) Salaries and wages payable 105,000 110,500 20,100 123,000 24, 200 105,000 Notes payable Interest payable Additional information I. On March 31, 2017, Zambrano lent a customer $51,000. Interest at 8% 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 May1 3. On October 31, 2018, Zambrano borrowed $105,000 from a local bank. Principal and interest at 6% are due on October 31, 2019 4. Annual rent on the company's 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: Answer is not complete Complete this question by entering your answers in the tabs below Required Required 2 Prepare an accrual basis income statement for 2018 (ignore income taxes). (Other expenses should be indicated with a minus sign.) 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: Answer is not complete Complete this question by entering your answers in the tabs below Required Required 2 Prepare an accrual basis income statement for 2018 (ignore income taxes). (Other expenses should be indicated with a minus sign.) ZAMBRANO WHOLESALE CORPORATION Income Statement For the Year Ended December 31, 2018 Sales revenue Cost of goods sold Gross profit Operating expenses nsurance expense Salaries and wages expense Rent expense Depreciation expense Total operating expenses Operating income Other income (expense) Interest revenue Interest expense Total operating expenses Operating income Other income (expense) Interest revenue Interest expense Net income Required 2 >

Answer 1

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110500 29 icno/Bghtbld B purthabe 40350o To bal cd 514000 514000 rventoy Lld To Purchase 4035 4&450o 481500

trepaid insurance 三 alao x 三 員4500 x 6 1 2 143 40