Caitlin is a sole trader and she has kept very detailed cash records. Caitin now feels that she needs to have accrual based records because more than half of her clients are credit customers. She supplies you with the following information for her first year of operation: CORPORATE CATERING STATEMENT OF CASH RECEIPTS AND CASH PAYMENTS FOR THE YEAR ENDED 30 JUNE 2018 CASH RECEIPTS Revenue from Customers Loan from Credit Union Ltd 286 000 30,000 CASH PAYMENTS 4,500 25,000 4,000 625 32,000 12,000 46,000 38,000 43,000 65,000 Advertising Apprentice Wages Accountant's Fees Interest on Loan from Credit Union Ltd s Purchase of Delivery Van Delivery Van Expenses Administration/Utilities Purchase of Catering Equipment Purchase of Supplies Drawings 270,125 ADDITIONAL INFORMATION Equipment was purchased at end of June 2018-no calculation of depreciation is required 1. Opening cash at bank balance $600. 2. Capital Balance as at 30 June 2017 is $3,600 3. Receipts from credit customers include $6,000 received for a function in December 2018. 4. The loan from 'Credit Union Ltd' was received on 1 January 2018; the interest rate is 5% per annum, payable on the 1st of each month. The first payment was made on 1 February 2018. 5. A 12 month advertising contract for $4,500 was started and paid in full on 1 March 2018. REQUIRED [a] Calculate the Cash Balance. In which Financial Statement is this information shown? [b] Show the Balance Day Adjustments required to record the additional information shown in point 3, 4 and 5 in a worksheet format. Explain why each adjustment is necessary 6. The apprentice is paid $500 a week. He is owed two weeks wages. 7. The business has use of a motor vehicle purchased 1 January 2017, at a cost of $32,000 It has an expected life of depreciation is used 4 years and an estim ated trade-in value of $4,000. Straight-line 8Supplies on hand 30 June 2017 were valued at $5,500 REQUIRED al What is 'Depreciation'? How is Depreciation Expense different from Accumulated Depreciation? b) Show the Balance Day Adjustments required to record the additional information shown in point 6,7 and 8 in a worksheet format. Explain why each adjustment is necessary. [c) Prepare an Income Statement and Balance Sheet for Corporate Catering