Danny Brown owns a business called Dry Wear, a business that provides dry cleaning services. It is now the end of the financial year and Danny needs some assistance with preparing the financial statements for Dry Wear. Danny was able to calculate the profit for the business for 2020 correctly as $76,800 but still needs assistance with the preparation of the Statement of Changes in Equity and the Balance Sheet. Although Danny is certain that the amounts in the Trial Balance are correct, he is not sure if the order of the Ledger Accounts in the trial balance is correct (please note that the trial balance continues on the next page).

The following additional information is available to you:

1. The loan will be repaid as follows: 10% will be repaid by 30 June 2021 and the remaining amount will be repaid on 30 June 2028.

The trial balance is provided on the NEXT PAGE.

Danny Brown trading as Dry Wear - TRIAL BALANCE AS AT 30 JUNE 2020

	Debit ($)	Credit ($)
Computer Equipment	35,000
Depreciation expense - Machinery	11,000
Cash at Bank	60,000
Doubtful debts expense	3,000
Cost of Sales	280,000
Salaries and Wages expense	65,000
Depreciation expense Computer Equipment	4,000
Machinery	80,000
Accounts Receivable	45,000
Rent expense	24,000
Drawings Danny Brown	8,000
Inventory	18,000
Prepaid Rent	6,000
Electricity Expense	12,000
Insurance expense	18,000
Supplies on hand	3,800
Supplies used expense	7,200
Loan payable		50,000
Accounts Payable		25,000
Sales revenue		497,000
Allowance for Doubtful debts		5,000
Accumulated depreciation Computer Equipment		18,000
Capital Danny Brown (1 July 2019)		50,000
Interest Revenue		4,000
Unearned revenue		2,000
Accrued Wages		4,000
Accumulated depreciation - Machinery		25,000
Total	680,000	680,000

REQUIRED:

Use the above information to prepare the following on 30 June 2020:

1. Statement of changes in equity, and (3 Marks)
2. Classified Balance Sheet. (9 Marks)

You need to complete your answers in the templates provided to you.