Please note Week 5 and 6 presentations are Caitlin is a sole trader and she has kept very detailed cash records. Caitlin 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 2017 CASH RECEIPTS Revenue from Customers Loan from 'Credit Union Ltd 286 000 30,000 316,000 CASH PAYMENTS Advertising Apprentice Wages Accountant's Fees Interest on Loan from Credit Union Ltd Purchase of Delivery Van Delivery Van Expenses Administration/ Utilities Purchase of Catering Equipment Purchase of Supplies Drawings 4,500 25,000 4,000 625 32,000 12,000 46,000 38,000 43,000 65,000 270,125 ADDITIONAL INFORMATION WORKSHOP 7 PRESENTATION QUESTION Please refer to details provided in Week 5 Presentation for Corporate Catering ADDITIONAL INFORMATION 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, It has an expected life of 4 years and an estimated trade-in value of $4,000. Straight depreciation is used. 8. Supplies on hand 30 June 2017 were valued at $5,500 REQUIRED [a) What is Depreciation'"? How is Depreciation Expense different from Accumulated Depreciation? 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 Prepare an Income Statement and Balance Sheet for Corporate Catering. b]