HI5001 Accounting for Business Decisions- Holmes University Australia
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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