Question:

WEEK 6 ADDITIONAL QUESTION 6.33 PREPARING AN ACCRUAL BASED STATEMENT Beatrice has prepared an income statement for the 12-month reporting period ended 30, June on a cash basis,(showing a $64 800 profit.)The cash-based statement shows the following: Sales $416 100 Inventory purchased 246 000 Gross profit 170 100 Expenses Salary and wages 42 600 Rent 13 800 Insurance 5 160 Advertising 8 400 Administration 28 200 Interest HIR = $29340 Alp = $14940 7 140 ADDITIONAL INFORMATION The accounts receivable and accounts payable balances at the start of the reporting period were $24 600and $14 700 respectively. At the end of the reporting period, Beatrice had accounts receivable of $31 800 and accounts payable of $29 640. . The opening inventory was $48 000 and the closing inventory $57 000. An advertising invoice of $4 440 had not been paid. ) . The business has equipment that cost $60 600. It has a useful life of five years and an expected trade-in value of $6 600. (60 600 - 6600 ) (5 = $10800 The insurance expense represents the 12-month premium on a policy that was taken out on (30 April. 30 April - 30 Tune = 2 months REQUIRED: $ 5 160 x 2/ 12 = 9860 1. Prepare an accrual-based income statement for Beatrice for the period ended 30 June