Trang Nguyen operates a roofing business that specialises in replacing broken tiles and cleaning and repairing roofs and gutters. He began business in April 2025 but has not yet established a formal set of records. His son, Tram, has prepared cash receipts and payments statements for each of the first 3 months of the business, but Trang Nguyen is worried about relying on them. He asks you to prepare a ‘proper’ set of financial statements for the month of June.

By reviewing the bank statements, cheque butts, invoice files and other data, you derive a set of balance sheets at 1 June and 30 June. These are shown below, followed by a statement of cash receipts and payments for March. GST is ignored.

(a) From the information, prepare an income statement on the accrual basis for the month of June. Hint: you may wish to prepare (reconstruct) relevant accounts.

(b) Illustrate the apparent correctness of your profit amount by preparing a statement of changes in equity for June 2025.

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ASSETS Cash at bank Accounts receivable Supplies on hand Equipment Accumulated depreciation (credit) LIABILITIES AND EQUITY Salaries payable Electricity account payable T. Nguyen, capital Cash receipts Received from credit customers Contributed by T. Nguyen Total cash receipts Cash payments Paid for supplies purchased Purchase of equipment Payment of salaries Paid for June rent Sundry expenses Cash withdrawn by T. Nguyen Total cash payments Net increase in cash balance NGUYEN ROOFING SERVICE Statement of financial position NGUYEN ROOFING SERVICE Statement of cash receipts and payments for June 2025 1 June 2025 30 June 2025 $ 9280 $15480 7220 9280 4100 62 000 (7 600) $75,000 $ 4640 70360 $75000 4640 74 400 (10300) $93 500 $ 7380 1470 84 650 $93 500 $27 860 20000 $47 860 6190 12 400 6700 2000 2370 12000 41660 $ 6200