1. Show the Balance Day Adjustments required to record the additional information shown in point 6, 7 and 8 in a worksheet format. Explain why each adjustment is necessary.
2. Make a Income Statement and Balance Sheet for Corporate Catering

(Please see attached file with all required information)

Caitlin is a sole trader and she kept very detailed cash records. Caitlin now feels that she needs to have accrual based records because more than half of her clients are credit customers She supplies you with the following information for her first year of operation: CORPORATE CATERING STATEMENT OF CASH RECEIPTS AND CASH PAYMENTS FOR THE YEAR ENDED 30 JUNE 2017 CASH RECEIPTS Revenue from Customers Loan from 'Credit Union Ltd' $ $ 286,000 30,000 316,000 CASH PAYMENTS Advertising 4,500 Apprentice Wages 25,000 Accountant's Fees 4,000 Interest on Loan from Credit Union Ltd 625 Purchase of Delivery Van 32,000 Delivery Van Expenses 12,000 Administration / Utilities 46,000 Purchase of Catering Equipment* 38,000 Purchase of Supplies 43,000 Drawings 65,000 270,125 ADDITIONAL INFORMATION *Equipment was purchased at end of June 2017 - no calculation of depreciation is required 1. Opening cash at bank balance $600. 2. Capital Balance as at 30 June 2017 is $600 3. Receipts from credit customers include $6,000 received for a function in December 2017 4. The loan from 'Credit Union Ltd' was received on 1 January 2017; the interest rate is 5% per annum, payable on the 1st of each month. The first payment was made on 1 February 2017. 5. A 12 month advertising contract for $4,500 was started and paid in full on 1 March 2017 6. The apprentice is paid $500 a week. He is owed two weeks wages. 7. The business has use of a motor vehicle purchased 1 January 2017, at a cost of $32,000. It has an expected life of 4 years and an estimated trade-in value of $4,000. Straight-line depreciation is used. 8. Supplies on hand 30 June 2017 were valued at $5,500