2.1 Explain the following terms: 2.1.1 Accrued income (3) 2.1.2 Accrued expense (3) 2.1.3 Income received in advance (3) 2.1.4 Prepaid expense (3) 2.1.5 Depreciation (3) 2.2 On 1 August 2014 Zama started a garden services business. The following is an extract of certain accounts from his trial balance on 31 August 2014: Prepaid expenses (insurance) R1500 Equipment R8000 Loan (credit) R10000 Fees earned R2000 Income received in advance (fees) R1500 The following relates to the above accounts: a. The insurance premium was paid for the month of September 2016. b. Depreciation on equipment for August 2014 amounts to R300. c. The loan was negotiated on 1 August 2014 at an interest rate of 15% per annum. d. A client paid R1500 on 1 August 2014, for the next four months (September, October, November and December). e. A client, who received services valued at R250 during August, has not yet paid for them. Zama would like to prepare statements on a monthly basis. REQUIRED: Prepare the adjusting general journal entries as at 31 August 2014. Show all calculations. (15)