During the year ended 30 June 2019, Skilled Services, a provider of temporary secretary personnel, had collected receipts from clients for a total value of $250 000. Wages of $136 000 had been paid to the temporary workers, rental of office space and electricity costs were $12 000 and $13 700 respectively for the year, and the owners withdrew $20 000 for their personal use.

Required

(a) Prepare an income statement for the year for Skilled Services.

(b) Skilled Services is a sole proprietor. Compare the liability of a sole proprietor owner with that of a company shareholder.