(Continued est papel QUESTION 3: Accounting Concepts (10 marks) For each of the following scenarios, in your own words, using a letter format and references where appropriate Ms Daphne Blake is the sole proprietor of Sunset a beach shade sale and hire business specialising in beach ents. Many of the customers who purchase or hire beach shades from Sunset have seen the Sunset shades set up on the beach in front of the shop. The local lifeguards use these shades to rest under between their shifts in the tower Ms Blake has had a meeting with the Managing Partner of Michell & Co Accounting Specialists Pty Lad and you were invited to attend During the meeting Ms Blake explained that she felt there was an omission in Sunset financial statements prepared by Michell & Co Accounting Specialists Pty Ltd. Ms Blake considered that the small area of beach in front of the shop should be recorded as an asset in 'Sunsetz Balance Sheet Ms Blake argued that it was de to the beach in front of the business she was able to set up a beach shade daily advertising the beach shades she hires out and selke After the meeting the Managing Partner tells you she is extremely busy with a number of clients at the moment and asks you to prepare a letter to Ms Blake REQUIRED: Please write a letter in your own words addressed to Ms Blake explaining whether or not the beach directly in front of Sunset can be recorded as an act in Sunet financial statement The explanation must refer to the appropriate element definitie and apply the facts provided above. Generic answers will achieve minimal marks (10 marks) clement asset, liability, income, expense Up to an additional 2 marks will be awarded for adhering to the following the formatting requirements - Date your letter the 8 August 2020 Address your letter to Ms Blake, Sunset26 The Esplanade. Stony Point, South Australia 5959 Any formal business letter format is acceptable a replane has not been provided students are expected to research business letter formats themselves). Consider an appropriate way to sign off your letter Set out your letter with subheading to separate cach part of your letter as you address the criteria required No specific word count is prescribed. However, given the nature of the questions, it would be expected that the entire letter including address and sign-of) should require ne more than a single A4 page Reference List Please list any references used to complete this assignment Harvard referencing principles must be followed. Please see this link for more information: Larvard Referencias Guide USA (current as at December 2018) 12:46 Answer 1 of 1 336000 Revenue less : sales return 32909 6904 16768 less: cost of good sold: opening stock 308968 add purchases add : freight inward 2256 less: purchase return less: closing stock (276906) (4336) (46750) gross profit $2190 less: Expenses: office salaries office electricity expenses 33280 insurance expenses office rent expenses 800 1520 doubtful debt expenses 2920 interest expenses 800 376 shop electricity expenses 454 depriciation expenses 2840 (73055) shop rent expenses 20520 advertising expenses 5237 less : prepaid advertising (1232) discount allowed 2980 fuel expense-delivery van 2560 add: other incomes discount recieved 2536 interest recieved 5184 allowances for doubtful debts 1848 800 NET LOSS (15681) (Continued est papel QUESTION 3: Accounting Concepts (10 marks) For each of the following scenarios, in your own words, using a letter format and references where appropriate Ms Daphne Blake is the sole proprietor of Sunset a beach shade sale and hire business specialising in beach ents. Many of the customers who purchase or hire beach shades from Sunset have seen the Sunset shades set up on the beach in front of the shop. The local lifeguards use these shades to rest under between their shifts in the tower Ms Blake has had a meeting with the Managing Partner of Michell & Co Accounting Specialists Pty Lad and you were invited to attend During the meeting Ms Blake explained that she felt there was an omission in Sunset financial statements prepared by Michell & Co Accounting Specialists Pty Ltd. Ms Blake considered that the small area of beach in front of the shop should be recorded as an asset in 'Sunsetz Balance Sheet Ms Blake argued that it was de to the beach in front of the business she was able to set up a beach shade daily advertising the beach shades she hires out and selke After the meeting the Managing Partner tells you she is extremely busy with a number of clients at the moment and asks you to prepare a letter to Ms Blake REQUIRED: Please write a letter in your own words addressed to Ms Blake explaining whether or not the beach directly in front of Sunset can be recorded as an act in Sunet financial statement The explanation must refer to the appropriate element definitie and apply the facts provided above. Generic answers will achieve minimal marks (10 marks) clement asset, liability, income, expense Up to an additional 2 marks will be awarded for adhering to the following the formatting requirements - Date your letter the 8 August 2020 Address your letter to Ms Blake, Sunset26 The Esplanade. Stony Point, South Australia 5959 Any formal business letter format is acceptable a replane has not been provided students are expected to research business letter formats themselves). Consider an appropriate way to sign off your letter Set out your letter with subheading to separate cach part of your letter as you address the criteria required No specific word count is prescribed. However, given the nature of the questions, it would be expected that the entire letter including address and sign-of) should require ne more than a single A4 page Reference List Please list any references used to complete this assignment Harvard referencing principles must be followed. Please see this link for more information: Larvard Referencias Guide USA (current as at December 2018) 12:46 Answer 1 of 1 336000 Revenue less : sales return 32909 6904 16768 less: cost of good sold: opening stock 308968 add purchases add : freight inward 2256 less: purchase return less: closing stock (276906) (4336) (46750) gross profit $2190 less: Expenses: office salaries office electricity expenses 33280 insurance expenses office rent expenses 800 1520 doubtful debt expenses 2920 interest expenses 800 376 shop electricity expenses 454 depriciation expenses 2840 (73055) shop rent expenses 20520 advertising expenses 5237 less : prepaid advertising (1232) discount allowed 2980 fuel expense-delivery van 2560 add: other incomes discount recieved 2536 interest recieved 5184 allowances for doubtful debts 1848 800 NET LOSS (15681)