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. The Batley Print Shop rents a photocopying machine from a supplier for which it makes a quarterly payment as follows. (a) Three months' rental

  • . The Batley Print Shop rents a photocopying machine from a supplier for which it makes a quarterly payment as follows. (a) Three months' rental in advance (b) A further charge of 2p per copy made during the quarter just ended The rental agreement began on 1 August 20X4 and the first 6 quarterly bills were as follows. Total Costs of copies taken Bills dated and received Rental $ $ $ 2,100 1 August 20X4 0 2,100 1 November 20X4 3,600 1,500 2,100 1 February 20X5 2,100 1,400 3,500 1 May 20X5 3,900 2,100 1,800 1 August 20X5 2,700 1,650 4,350 1 November 20X5 2,700 1,950 4,650 The bills are paid promptly, as soon as they are received. (a) Calculate the charge for photocopying expenses for the year to 31 August 20X4 and the amount of prepayments and/or accrued charges as at that date (b) Calculate the charge for photocopying expenses for the following year to 31 August 20X5, and the amount of prepayments and/or accrued charges.

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