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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