Accounting transactions: reconstruction required The balance sheet and income statement of Reconstruction Limited are reproduced as follows.

RECONSTRUCTION LIMITED BALANCE SHEET 31/12/2022

$

31/12/2021

$

Assets Cash 0 5 000 Accounts receivable 40 000 27 000 Prepaid insurance 3 000 2 000 Equipment 90 000 90 000 less Accumulated depreciation (31 000) (22 000)

Motor vehicle 25 000 25 000 less Accumulated depreciation (10 000) (5 000)

Total assets 117 000 122 000 Liabilities Accounts payable 500 1 000 Wages payable 6 000 4 000 Interest payable 2 500 3 000 Income tax payable 0 2 000 Long-term loan 50 000 50 000 Total liabilities 59 000 60 000 Net assets 58 000 62 000 Shareholders’ equity Share capital 39 000 39 000 Retained profits 19 000 23 000 Total shareholders’ equity 58 000 62 000 RECONSTRUCTION LTD INCOME STATEMENT FOR THE YEAR ENDED 31 DECEMBER 2022

$ $

Fees revenue 105 000 Depreciation expense (14 000)

Electricity expense (8 000)

Insurance expense (17 000)

Interest expense (4 500)

Rent expense (24 000)

Stationery expense (3 500)

Wages expense (38 000) (109 000)

Profit/(loss) before tax (4 000)

Income tax expense 0 Profit/(loss) after tax (4 000)

1 How much cash was paid for insurance during the year?
2 How much cash was paid for electricity during the year?
3 How much cash was paid for interest during the year?
4 How much cash was paid for income tax during the year?
5 The last monthly rent payment was made on 15 December 2022. Monthly rent is $2000 per month.
How much rent is owing as at the end of the year?