Question 7 (15 marks) a. Rent prepaid as at the commencement of the year was $8,000. Having agreed to pay rent at $4,000 per month, the business was able to pay during the year only $28,000. Determine the outstanding amount of rent at the year-end? Show your workings clearly. 5 marks b. Prior to preparing the Statement of financial position as at 31 December 20x1 adjustments are needed for: i. Stationery remaining unused by the year-end is $5,400. ii. Rent income account includes $6,000 relating to the period after the year-end. iii. A loan given to an employee is reported at $4,500 after wrongly crediting to that account an amount of $200 received as interest on the loan. As at the year-end salary accrued and insurance prepaid amount to $22,500 and $4,800 respectively. iv. Determine the effect of making these adjustments in the Statement of financial position. Show your working clearly