# Solution 1- Preparing financial statement

Income statement of safety hire for the month of June

 Safety Hire Income statementfor the month of June Income: In (\$) In (\$) equipment hire income 170000 Total income 170000 Expenses: wages expenses 75000 advertisement expenses 30000 electricity expenses 18000 telephone expenses 7500 Total expenses 130500 Net Profit/ (loss) 39500

Balance sheet of safety hire for the month of June

 Safety Hire Balance Sheet for the year ended 30 June 2019 ASSETS In (\$) In (\$) current assets: accounts receivable 63000 cash at bank 45000 Total current assets 108000 non-current assets: building 85000 land 75000 hire equipment 180000 Total non-current assets 340000 Total assets 448000 EQUITY AND LIABILITIES owner's equity Michael Donoto capital (b/f) 88500 net income 39500 128000 noncurrent liabilities mortgage payable 130000 loan payable 50000 Total non-current liability 180000 current liabilities accounts payable 40000 Total current liability 40000 total equity and liabilities 448000

# Solution 2 - Transaction analysis

## Part a & b

Accounting equation

 Assets Liability equity s.no. cash at bank + Supplies + Equipment = accounts payable + loan payable + Capital D. Jones 1 35000 + + = + + 35000 2 (14000) + + 24000 = + 10000 + Total 21000 + + 24000 = + 10000 + 35000 3 5000 + + = + + 5000 Balance 26000 + + 24000 = + 10000 + 40000 4 (1500) + + = + + (1500) Balance 24500 + + 24000 = + 10000 + 38500 5 + 2100 + = 2100 + + Balance 24500 + 2100 + 24000 = 2100 + 10000 + 38500 6 (1200) + + = + + (1200) Balance 23300 + 2100 + 24000 = 2100 + 10000 + 37300 7 (250) + + = + + (250) Balance 23050 + 2100 + 24000 = 2100 + 10000 + 37050 8 (2100) + + = (2100) + + Balance 20950 + 2100 + 24000 = 0 + 10000 + 37050 9 + (750) + = + + (750) final balance 20950 + 1350 + 24000 = 0 + 10000 + 36300

## Part c

 Income statement of Jones’ Mower Repairs for the month ended 31 August 2019 Particular Amount in (\$) Amount in (\$) Income services income 5000 Total income 5000 Expenses supplied consumed 750 payment of rent 1500 payment of wages 1200 payment of electricity 250 Total expenses 3700 profit earned during the year 1300

 Balance Sheet of Jones’ Mower Repairs for the month ended 31 August 2019 assets In (\$) non-current assets: repair equipment 24000 Supplies 1350 current assets: cash at bank 20950 total assets 46300 equity and liabilities owner's equity Capital 35000 net income 1300 noncurrent liabilities: loans payable 10000 total equity and liabilities 46300

 Changes in equity of Jones’ Mower Repairs for the month ended 31 August 2019 Particular Amount (in \$) Opening capital 0 Add: capital contribution 35000 Net income 1300 Closing capital 36300

# Solution 3

Statement of Profit& loss earned by Sen Widyaya during the year ended 30 June 2018 and 30 June 2019

 Particular 2017-18 (in \$) 2018-19 (in \$) Opening Balances 28000 30000 Less - drawing (25000) (15000) Less - capital withdrawal (10000) Add - capital invested 8000 profit earned during the year (b/f) 19000 22300 balance transferred to balance sheet 30000 27300

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