Q1. Using Accrual Accounting, prepare the Income Statement for the year ended 31 December 2020.

Q2. Using Accrual Accounting, prepare the Balance Sheet as at 31 December 2020.

Q3. What are the General Purpose Financial Reports? Name four users and identify the information that would be relevant to them.

Question 2 Spring Cleaning commenced business on 1 January 2020. Detailed cash records have been kept and the following information is provided: Spring Cleaning Statement of Cash Receipts and Cash Payments for 12 months ended 31 December 2020 Receipts Receipts from Customers 250,000 Initial Capital 60,000 Bank Loan 200,000 Payments Rent 60,000 Advertising 3,000 Purchase of Company Car 30,000 Time Left:3:16:3 Fauziyyah Galu Manaran Receipts Receipts from Customers 250,000 Initial Capital 60,000 Bank Loan 200,000 Payments Rent 60,000 Advertising 3,000 Purchase of Company Car 30,000 Wages 70,000 Electricity 3,500 Personal Expenses 19,000 Purchase of supplies 124,000 Telephone 10,000 Insurance 4,800 Interest 16,500 . Additional Information Receipts from customers included $4,500 for an event organized in January 2020. A 12 month insurance policy for $4,800 was paid in full on 1 August 2020. The business vehicle is used for business purposes only. It was purchased on 1 September 2020. It has an expected life of 4 years with a trade in-value of $4,000. Use Straight Line Depreciation. Rent is $4,000 per month, paid 3 months in advance. Event supplies on hand as at 31 December 2019 are $29,500. An amount of $12,000 is owed from customers for events completed during the last week of December 2019. A telephone bill of $300 for calls made to the 28 December 2020 has been received and not yet been paid. The bank loan commenced on 1 January 2020. Interest is 9 % per annum payable on the first day of each month. The first payment was made on 1 February 2020. . Required 1. Using Accrual Accounting, prepare the Income Statement for the year ended 31 December 2020. 2. Using Accrual Accounting, prepare the Balance Sheet as at 31 December 2020 3. What are General Purpose Financial Reports? Name four users and identify the information that would be relevant to them. ( 8+ 8 + 4 = 20 marks)