Question:

Question 2 Stewart Marketing Consultants (commenced business on 1 July 2020) Detailed cash records have been kept and the following information is provided to you. Stewart Marketing Consultants Statement of Cash Receipts and Cash Payments for 12 months ended 30 June 2021 Receipts Revenue from Clients 380,000 Capital 70,000 Payments Rent of premises 30,000 Advertising 3,000 Motor Vehicle 50,000 Wages 70,000 Electricity 4,500 Drawings 16,000 Office supplies 24,000 Insurance 6,000 Telephone expenses 5,000 Additional Information sales ) Revenue from clients includes $14,500 for marketing services to be provided in July 2021. A 12 month insurance policy totalling $6,000 commenced and paid in full on 1 August 2020. x 2/12 = $1000 Motor Vehicle was purchased on 1 November 2020. It has an expected life of 3 years with a trade-in value of $5,000. Use Straight Line Depreciation. (5000 0 - 500 0) = 3 x 5/12 = $ 6250 * 3 = $6060 +$30K Rent of premises is $2,000 per month, paid 3 months in advance. Office Supplies on hand at 30 June 2021 is $12,500. An amount of $11,500 is owed for services completed on 28 June 2021. As at 30 June 2021 wages owing to employees amounted to $6,350. Required [1] Using Accrual Accounting, prepare the Income Statement for the year ended 30 June 2021. [2] Using Accrual Accounting, prepare the Balance Sheet at 30 June 2021