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QUESTION 2 (10 Marks): These following financial statement balances are for Mandy Hardware Shop for the end of the financial year, 31 December 2020: Account
QUESTION 2 (10 Marks): These following financial statement balances are for Mandy Hardware Shop for the end of the financial year, 31 December 2020: Account description Amount $ Accounts payable 21,000 Accounts Receivable 19,800 Accumulated Depreciation Building 24,000 Advertising incurred 11,200 Advertising Payable 1 1,200 Bank Loan 120,000 Building 150,000 Capital 173,000 Cash 35,000 Depreciation 27,000 Drawings 20,200 Sales Revenue 210,000 Inventory 30,000 Land 130,000 Motor Vehicle Expenses 35,000 Other Expenses 48,000 Rent Revenue 70,000 Rent Revenue Received in Advance 12,000 Salaries Expense 65,000 Supplies used 43,000 Required: a) Prepare a Statement of Profit or Loss for Mandy Hardware Shop at 31 December 2020. (5 marks) b) By referering to specific items within Mandy Hardware Shop's statement of profit or loss, name several key stakeholders and discuss how the statement be useful to these stakeholders. (5 marks) (5+ 5=10 marks)
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