1. What does "Accrual Basis Accounting" mean, explain shortly with a simple application. 2. Due to the items given below, prepare the Incpme Statement and the Balance Sheet of the business for the end of the last period 3. Make a short financial comment about the business. 4. Journalize the opening record and the transactions realized during current period (ledger book will not be recorded). Balance Sheet and Income Statement items of Speedy Delivery Service, a cargo delivery business, for the end of December 2019 are given below in random order. 300 BANK LOANS $28,600 120 CUSTOMERS $12.100 121 NOTES RECEIVABLE $41,200 255 FURNITURE & FIXTURES $26,300 632 GEN ADM. EXP $14,400 254 MOTOR VEHICLES $76,000 320 SUPPLIERS $28,700 102 BANKS $32,720 500 CAPITAL 2 131 REC. FROM SHAREHOLDERS $61,500 600 DOMESTIC SALES $97,500 660 FINANCIAL EXPENSES $1,520 622 COST OF SERV. REND $17.650 631 MARK SALES DIST. EXP. $9.130 100 CASH $26,500 103 CHECKS & PAY ORDERS GIV. $11,420 580 PRIOR PERIOD LOSSES ) $4,775 630 RES. & DEV. EXP $7,300 611 SALES DISCOUNT $2,500 257 ACC. DEPRECIATIONS $9,540 405 BOND & NOTES ISSUED $40,000 260 RIGHTS $50,000 Jan.2 Paid the warehouse rent for three months $6,000 in cash. Jan. 3 Signed an agreement with a cargo line to transport their small items for 6 months, received 3 months' amount in advance $30,000. Jan. 4 Purchased a new conveyer (konveyr - tayc) for $20,000, paid $5,000 in cash and signed 15 notes with equal amounts and to be paid monthly. Jan.5 Collected $2,100 in cash from customers. Jan. 6 The total of the sales slips is $17,000, collected in cash. Jan.7 Signed a 3 months delayed check $20,000 for the debts to the suppliers. Jan. 8 The total amount of the bills sent during the period is $28,000 which is to be collected in the next period. Jan. 9 Paid $3,800 for bank loans. Jan.29 Received bill for gasoline of the cargo vehicles amounting $3,500. Jan.30 The agreement signed with the cargo lines is met perfectly. GOOD LUCK ***