Dawson Industries began operations early in January 2017. On 31 December 2017, records showed the following asset, liability, equity, income and expense amounts:

Required
A. Prepare an income statement for Dawson Industries for the year ended 31 December 2017.
B. Prepare a balance sheet as at 31 December 2017.
C. Prepare a statement of changes in equity for 2017.
D. Explain the difference between the items ‘supplies’ and ‘supplies expense’.

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Accounts receivable Rent expense Cash at bank Supplies expense Accounts payable Service income Supplies Equipment $25600 13 500 10 250 5250 9 500 147 500 11 000 48 000 Lila Dawson, Capital Electricity expense Telephone expense Advertising expense Insurance expense Wages expense Drawings $ ? 7 200 4 900 12500 2500 44 000 23 400