Question

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

Accounts receivable
Equipment hire income
Accounts payable
Michael Donato, capital
Cash at bank
Mortgage payable
Building
$ 63 000
170 000
40 000
?
45 000
130 000
85 000
Wages expense
Advertising expense
Land
Hire equipment
Loan payable
Electricity expense
Telephone expense
$ 75000
30 000
75 000
180 000
50 000
18000
7 500
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. (10 marks)

Answer 1

Step-by-step explanation:

Safety Hire

Income statement for the Month of June 30,2019

particulars Amount ($) Amount($)

Equipment hire income $170,000

Total income 170,000

Less; Expenses

Wages expenses $75,000

Advertising Expense $30,000

Electricity $18,000

Telephone Expense $7,500

Total expenses $130,500

Net Income(Total Income-Total Expenses) $39,500