PLUS Assessment to accompany Birt, Accounting: Business reporting for decision making Help System Announcements PRINTER VERSION BACK NEXT SOURCES line End of Chapter Question 6.33 Your answer is partially correct. Try again. Question er Question Racey has prepared an income statement for the 12-month reporting period ended 30 June on a cash basis, showing a $32,030 profit. The cash-based statement shows the following: Sales $205,300 s by Study Inventory purchased 121,400 Gross profit 83,900 Expenses Salary and wages 21,000 Administration 13,900 Rent 6,800 Advertising 4,100 Interest 3,520 Insurance 2,550 Additional information The accounts receivable and accounts payable balances at the start of the reporting period were $12,100 and $7,300 respectively. At the end of the reporting period, Racey had accounts receivable of $15,700 and accounts payable of $14,620. The opening inventory was $23,700 and the closing inventory was $28,100. An advertising invoice of $2,190 had not been paid. The business has equipment that cost $29,900. It has a useful life of 5 years and an expected salvage value of $3,300. The insurance expense represents the 12-month premium on a policy that was taken out on 30 April. Prepare an accrual-based income statement for Racey for the period ended 30 June. (In the Adjustments column, use a plus or minus sign to indicate an increase or decrease, for example +500 or -500. When entering the adjustments for inventory purchased, three entries are required to adjust from opening inventor to clasinc inventory please enter your answers in this order from onenine to clasinc inventor leave field blants if no amanti racuired Prepare an accrual-based income statement for Racey for the period ended 30 June. (In the Adjustments column, use a plus or +500 or -500. When entering the adjustments for inventory purchased, three entries are required to adjust from openin this order from opening to closing inventory. Leave fields blank if no amount is required.) Racey Income statement for the 12-month reporting period ended 30 June Cash basis ($) Adjustments ($) Accrual basis ($) Sales 1205300 3520 208820 1121400 23700 Cost of sales inventory purchased) 0000 X Gross profit 183900 Expenses Salary and wages T21000 T21000 Administration 113900 T13900 Rent 16800 T6800 Advertising 6290 14100 2190 Interest 3520 13520 X X Insurance 12550 X Depreciation DINO Total expenses 1518701 Profit