RIA Music Club owns its premises where it has a shop and a number of music rooms. Shop sales are for cash and shop purchases are on credit. Mark-up is 20%. The treasurer provided the following information. At 1 January 2020 At 31 December 2020 $ Subscriptions in advance Subscriptions in arrears Total shop trade payables Shop inventory Balance at bank For the year to 31 December 2020 Subscriptions received Shop purchases Shop purchases returns Interest charged on overdue shop trade payables accounts $ 1200 5215 4275 2500 240 1050 5830 4990 2500 110 36 700 34200 1710 200

1. (a)Prepare the subscriptions account for the year ended 31 December 2020. Balance the account and bring down the balances on 1 January 2021.[6]
2. (b)Prepare the total shop trade payables account for the year ended 31 December 2020 to calculate the amount paid to shop trade payables.[6]
3. (c)Calculate the revenue from shop sales for the year ended 31 December 2020.[3]
4. (d)Advise the treasurer whether renting out part of the premises is the most suitable way of improving cash flow or whether other methods may be more suitable. Justify your answer.[5]