Expenses listed in the year-end Trial Balance on 31 December 2010 include those on the right. In addition, salary and advertising amounting to £24,500 and £8,400 respectively remain unpaid at the year-end; while rates have been paid for five quarters at £1,200 each.

Required:

Identify the amounts at which each expense should be stated in the Statement of income and any related asset or liability to be shown in the Statement of financial position.

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Salaries Advertising Rates £128,600 £21,800 £6,000