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Financial data for Safety Hire as of 30 June 2019 are:

Required:
Prepare an income statement for the month of June and a balance sheet in account format for Safety
Hire as at 30 June 2019

1 Answer

2 votes

Answer:

Hi, the question you have given has missing data, however the following can be noted when dealing with the required.

Income statement for the month of June

The Income Statement contains Revenues and Revenue Expenditures

Step 1 ; Obtain the Sales Amounts

Step 2 : Obtain the Cost of Sales Amounts

Step 3: Obtain the Operating and Non-Operating Expenses Amounts

Step 4: In Vertical Format or T - Account Prepare and Calculate the Income or Loss

Income or Loss = Sales - Cost of Sales - Expense

Balance sheet in account format for Safety Hire as at 30 June 2019

Balance Sheet contains balances of Assets, Liabilities and Capital (Which included Income or loss calculated in Income Statement above)

The Accounting Equation must be borne in mind ; Assets = Liabilities + Capital

The Account Format Must have entries as follows :

Debit :

Enter Assets Balances

Credit:

Enter Liabilities Balances

Enter Capital Balances (Which include Income or loss calculated in Income Statement above)

Step-by-step explanation:

Note key notes as explained above.

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