Raintree 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, 2024:

Cash receipts:
From customers	$ 490,000
Interest on note	3,480
Issue of common stock	50,000
Total cash receipts	$ 543,480
Cash disbursements:
Purchase of inventory	$ 228,000
Annual insurance payment	7,000
Payment of salaries	188,000
Dividends paid to shareholders	7,000
Annual rent payment	14,000
Total cash disbursements	$ 444,000

Selected balance sheet information:

	12/31/2023	12/31/2024
Cash	$ 33,000	$ 132,480
Accounts receivable	50,000	86,000
Inventory	68,000	98,000
Prepaid insurance	2,000	?question mark
Prepaid rent	7,000	?question mark
Interest receivable	1,740	?question mark
Note receivable	58,000	58,000
Equipment	166,000	166,000
Accumulated depreciation	(48,000)	(71,000)
Accounts payable (for inventory)	58,000	78,000
Salaries payable	28,000	44,000
Common stock	280,000	330,000
Dividends	0	9,000

Additional information:

1. On June 30, 2023, Raintree lent a customer $58,000. Interest at 6% is payable annually on each June 30. Principal is due in 2027.
2. The annual insurance payment is made in advance on March 31.
3. Annual rent on the companys facilities is paid in advance on September 30.

Required:

1. Prepare an accrual basis income statement for 2024 (ignore income taxes).
2. Determine the following balance sheet amounts on December 31, 2024:Required 1

• Required 2

Prepare an accrual basis income statement for 2024 (ignore income taxes).

	RAINTREE CORPORATION Income Statement For the Year Ended December 31, 2024 0 0 0 $0

2. Determine the following balance sheet amounts on December 31, 2024:

	a. Interest receivable b. Prepaid insurance c. Prepaid rent