Trang Nguyen operates a roofing business that specialises in replacing broken tiles and cleaning and repairing roofs and gutters. He began business in April 2019 but has not yet established a formal set of records. His son, Tram, has prepared cash receipts and payment 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 June. GST is ignored.

Required

(a) From the information presented, prepare an income statement on the accrual basis for the month of June.

(b) Illustrate the apparent correctness of your profit amount by preparing a statement of changes in equity for June 2019.

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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 NGUYEN ROOFING SERVICE Balance Sheets 1 June 2019 $ 9280 7220 4100 62 000 (7 600) $75.000 4640 70 360 $75 000 30 June 2019 $ 15480 9280 4 640 74 400 (10 300) $93 500 7380 1470 84 650 $ 93 500