For text, Font style: Times New Roman; Font size: 12; Line spacing: 1.5 lines. Include the page number on each page. Reference or bibliography at the end (use APA referencing guidelines). Writing requirements: (b) Develop your points in a clear, logical and succinct manner. Be mindful of the target audience/reader. Use language appropriate to the reader's expected level of knowledge. Free from grammatical and typographical errors. Provide in-text citations when referencing (use APA referencing guidelines). Include less relevant details as an appendix if necessary. Good overall presentation of the report. Question 1 Your friend, George, has invited you to invest in his business started a few years ago. According to him, the business has tripled its revenue since the lifting of Covid 19 restrictions. He anticipated a huge increase in customer demand for the next 2 years. You have requested him to furnish you with the latest set of financial statements. Required: Identify the key financial statements. Describe the information that is reported in these statements and explain why you need to read them before deciding whether to invest. (34 marks) In addition, list other relevant information you wish to request from him. Your answers must not exceed 600 words. Question 2 On 1 January 2024, Tom Lee started a web design firm, Web Solutions (WS). The following are the transactions that occur during the first month of operations. 01 Jan. Tom invested $20,000 cash, and a $6,000 computer in the firm. 01 Jan. Tom received $20,000 from his best friend, Dick as a personal loan to him. 01 Jan. Tom invested the $20,000 which he received from Dick as his own investment in the firm. 01 Jan. 01 Jan. (6 marks) The firm hired a web-designer for $4,500 per month. The firm paid $3,000 cash for January and February rental and another $1,500 for the rental deposit. The rental deposit is refundable. 05 Jan. The firm purchased $1,000 of supplies on account from a supplier. 17 Jan. 25 Jan. The firm billed a customer $7,000 for a job done. The firm received $1,000 cash from another customer as advance payment for a job to be performed in February. 31 Jan. The firm received a telephone bill of $200. Arrangement has been made to pay the bill on 6 February via inter-bank transfer. 31 Jan. The firm paid the web-designer's salary for the month. 31 Jan. An inventory count of supplies showed $300 was still available. 31 Jan. Depreciation of the computer for the month is $500. Required: (a) (b) Analyse the above and record all necessary entries (including adjusting entries). Narration is not required. (26 marks) Present the trial balance of Web Solutions as of 31 January 2024. Question 3 On 1 Dec 2023, Fruits Pte Ltd's trial balance includes the following items: Account Dr ($) Cr (S) 220,000 Accounts Receivables Allowance For Doubtful Accounts 5,000 In the month of December, Fruits Pte Ltd made credit sales of $15,000 and a cash sale of $5,000. The company also collected $18,000 from its accounts receivables in December. (iii) A review of the Accounts Receivables on 1 Dec 2023 reveals the following: Customer Balance Remarks Apple Associates $3,000 Banana Brothers $7,000 (i) (9 marks) The customer has gone bankrupt. 70% is estimated to be uncollectible. An aging analysis of the rest of the accounts receivables indicated that an estimated 3% of these accounts would not be collectible. The company uses the allowance method to value its accounts receivables. Required: (a) (b) Journalise the transactions above including the necessary adjusting journal entries for the company to recognize bad debts. Narration is not required. However, it is important to present all the workings. Round your answers to nearest $. (21 marks) Determine the net realizable value of the accounts receivable as of 31 Dec. (4 marks)