On 1 May 20.18 Venus Traders entered into a new two-year advertising agreement with Tino Advertising Agency. The advertising agreement was effective with immediate effect and stipulated that Venus Traders would pay R2 750 per month to Tino Advertising Agency for advertising services that would be provided by Tino Advertising Agency on a monthly basis. Tino Advertising Agency has performed all the necessary advertising services that was required from them since the effective date of the advertising agreement for the current financial period (the current financial period ends on 28 February 20.19).

The pre-adjustment trial balance for the year ended 28 February 20.19 reflected advertising expenses for an amount of R22 000 as well as accrued advertising expenses of R4 500 on 1 March 20.18 (the beginning of the current financial period). On 20 April 20.18 Venus Traders paid the advertising expenses that was outstanding from the previous financial period. The outstanding advertising expenses for the current financial period must still be provided for.

The advertising expenses amount to be disclosed in the statement of financial position as at 28 February 20.19 will be: