2 1 4 100% + SECTION A Answer ALL questions from this section. (60 marks in total) (1) Financial Statements Preparation Miss Hope opened a new ticketing business that started trading on 1 January 2019 investing 50,000 cash into the business. She buys tickets for sporting and other events at face value and then sells them at a premium. The following is a summary of the transactions for the first year of trading. 1. 2. She rented premises for 14,400 for the period from 1 January 2019 to 30 June 2020 and paid in advance. This included utilities that was paid on 1 January 2019. She purchased computers for cash on 1 January for 2,750. It is expected that they will be used for 4 years and then be sold for 250. She paid 450 for her internet services covering the period from 1 January 2019 to 31 September 2019 and owes an estimated 150 for the period from 1 October through to 31 December 2019. 3. 4. Wages totalling 18,200 were paid out during the year, and 2,100 was still owed for work undertaken in the month of December. 5. 6. 7. She bought tickets for 254,000 paid for in advance. She generated sales revenue of 253,300 in cagh. Customers paid her 24,200 for tickets in advance of them becoming available and Miss Hope was able to deliver tickets that customers had paid 18,800 for. The cost of the tickets sold (cash and paid for in advance) amounted to 221,700. Miss Hope was unable to sell tickets costing 4,100 which are now worthless. 8. 9. Required: Produce a report showing the change in the firm's cash position, and then prepare an Income Statement for the year ended 31 December 2019 and a Statement of Financial Position as at the 31 December 2019. (Total: 30 marks) FE ET B ma 2 3 S 4 5 6 & 7 9 0