Brighton Stationary is a small firm processing and selling office supplies. The firm has also sub-rented part of its unused space to another business. Brighton Stationary's most recent account balances at the end of the 31 December 2022 reporting period are presented below. Depreciation expense $20 050 Accounts Payable $20 600 Office Supplies as at 31 December 2022. $200 Receivables $10 000 Equipment $120 000 Rent received in advance $12 000 Cost of supplies sold $17 500 Insurance expense $2100 Accumulated Depreciation equipment as at 31 December 2022 Owner's capital $14 700 owners capital $75 000 Salaries payable $6000 Salaries expense $100 300 Rent revenue $14 000 Retained earnings as at 1 January 2022 $16 000 Prepaid insurance $650 Rent expense $29 500 Cash $36000 Sales revenue $178 000 a) Prepare i) Income statement for the year ended 31 December 2022. ii) Balance sheet as at 31 December 2022. b) Identify and describe potential users of Brighton Stationary financial statements.

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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Brighton Stationary is a small firm processing and selling office supplies. The firm has also sub-rented part
of its unused space to another business. Brighton Stationary's most recent account balances at the end of
the 31 December 2022 reporting period are presented below.
Depreciation expense $20 050
Accounts Payable $20 600
Office Supplies as at 31 December 2022. $200
Receivables $10 000
Equipment $120 000
Rent received in advance $12 000
Cost of supplies sold $17 500
Insurance expense $2100
Accumulated Depreciation- equipment as at 31 December 2022 Owner's capital $14 700
owners capital $75 000
Salaries payable $6000
Salaries expense $100 300
Rent revenue $14 000
Retained earnings as at 1 January 2022 $16 000
Prepaid insurance $650
Rent expense $29 500
Cash $36000
Sales revenue $178 000
a) Prepare
i) Income statement for the year ended 31 December 2022.
ii) Balance sheet as at 31 December 2022.
b) Identify and describe potential users of Brighton Stationary financial statements.
Transcribed Image Text:Brighton Stationary is a small firm processing and selling office supplies. The firm has also sub-rented part of its unused space to another business. Brighton Stationary's most recent account balances at the end of the 31 December 2022 reporting period are presented below. Depreciation expense $20 050 Accounts Payable $20 600 Office Supplies as at 31 December 2022. $200 Receivables $10 000 Equipment $120 000 Rent received in advance $12 000 Cost of supplies sold $17 500 Insurance expense $2100 Accumulated Depreciation- equipment as at 31 December 2022 Owner's capital $14 700 owners capital $75 000 Salaries payable $6000 Salaries expense $100 300 Rent revenue $14 000 Retained earnings as at 1 January 2022 $16 000 Prepaid insurance $650 Rent expense $29 500 Cash $36000 Sales revenue $178 000 a) Prepare i) Income statement for the year ended 31 December 2022. ii) Balance sheet as at 31 December 2022. b) Identify and describe potential users of Brighton Stationary financial statements.
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