( a) Taylor's Art Supplies reports $20,000 sales revenue for the current year, $10,000 of which was from credit sales and still outstanding at the end of the year. During the year, operating expenses of $11,000 were incurred. Of these expenses, $6,000 were paid in cash and the remainder will be paid next year. In addition, the bus..ess paid $10,000 for rent expense of which $5,000 related to next year. Required: Calculate the profit or loss earnt by the business for the current year using the accrual basis of accounting (4 marks)

a) Taylor's Art Supplies reports $20,000 sales revenue for the current year, $10,000 of which was from credit sales and still outstanding at the end of the year. During the year, operating expenses of $11,000 were incurred. Of these expenses, $6,000 were paid in cash and the remainder will be paid next year. In addition, the business paid $10,000 for rent expense of which $5,000 related to next year. Required: Calculate the profit or loss earnt by the business for the current year using the accrual basis of accounting (4 marks)