Transaction analysis – revenue and expenses LM started business on 1 July 2022, and had the following transactions on 1 July:

a Issued 500 000 shares of $2 for $1 million cash.

b Bought $50 000 worth of inventory on credit.

c Bought equipment for $300 000, paying cash. The equipment has a 10-year life.

d Paid $6000 for a year’s rent on a building.

e Took out a four-year $120 000 bank loan at an interest rate of 5 per cent per annum. The interest is not payable until the end of the loan.

Between 1 July and 31 December, the following transactions occurred:

f Sold inventory that cost $45 000 for $110 000. All sales were on credit.

g Paid $30 000 to suppliers of inventory for the credit purchases in point (b).

h Collected $65 000 from customers.

i Paid salaries of $18 000.

j Received $7700 for a job to be completed in February 2023.

On 31 December:

k Salaries of $4000 were owing to staff.

l Owed $5000 by the bank for interest.

Required:

For the period 1 July to 31 December 2022:

1 List all revenues (including dollar amounts) that will appear in the income statement.

2 List all expenses (including dollar amounts) that will appear in the income statement.