Michael Don owns an equipment hire business under the name Safety Hire. Financial data for Safety Hire as of 30 June 2019 are shown as below: Equipment $ 190,000 Accounts receivable $ 73,000 Advertising expense 32,000 Equipment hire income 200,000 Prepaid insurance 9,000 Rental income 9,000 Insurance expense 4,000 Accounts payable 88,000 Electricity expense 3,000 Cash at bank 48,000 Salaries & wages expense 78,000 Required: Prepare an income statement for the business for the year ending 30 June 2019. Prepare a balance sheet in narrative format for Safety Hire as at 30 June 2019. Prepare a statement of changes in Equity for the year and determine Michael Don’s capital at 30 June 2018?
Michael Don owns an equipment hire business under the name Safety Hire. Financial data for Safety Hire as of 30 June 2019 are shown as below: Equipment $ 190,000 Accounts receivable $ 73,000 Advertising expense 32,000 Equipment hire income 200,000 Prepaid insurance 9,000 Rental income 9,000 Insurance expense 4,000 Accounts payable 88,000 Electricity expense 3,000 Cash at bank 48,000 Salaries & wages expense 78,000 Required: Prepare an income statement for the business for the year ending 30 June 2019. Prepare a balance sheet in narrative format for Safety Hire as at 30 June 2019. Prepare a statement of changes in Equity for the year and determine Michael Don’s capital at 30 June 2018?
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Topic Video
Question
Michael Don owns an equipment hire business under the name Safety Hire. Financial data for Safety Hire as of 30 June 2019 are shown as below:
|
Equipment |
$ 190,000 |
|
$ 73,000 |
|
Advertising expense |
32,000 |
Equipment hire income |
200,000 |
|
Prepaid insurance |
9,000 |
Rental income |
9,000 |
|
Insurance expense |
4,000 |
Accounts payable |
88,000 |
|
Electricity expense |
3,000 |
Cash at bank |
48,000 |
|
Salaries & wages expense |
78,000 |
|
|
Required:
- Prepare an income statement for the business for the year ending 30 June 2019.
- Prepare a
balance sheet in narrative format for Safety Hire as at 30 June 2019. - Prepare a statement of changes in Equity for the year and determine Michael Don’s capital at 30 June 2018?
Expert Solution
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
Step by step
Solved in 4 steps with 6 images
Knowledge Booster
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.Recommended textbooks for you
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Horngren's Cost Accounting: A Managerial Emphasis…
Accounting
ISBN:
9780134475585
Author:
Srikant M. Datar, Madhav V. Rajan
Publisher:
PEARSON
Intermediate Accounting
Accounting
ISBN:
9781259722660
Author:
J. David Spiceland, Mark W. Nelson, Wayne M Thomas
Publisher:
McGraw-Hill Education
Financial and Managerial Accounting
Accounting
ISBN:
9781259726705
Author:
John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles
Publisher:
McGraw-Hill Education