During the first week of January 20X5, Nick Power began an energy-efficiency consulting company Power Smart Ltd. He kept no formal accounting records; however, his record of cash receipts and disbursements was accurate. The business got off to a strong start, but Nick soon needed financing for day-to-day expenses. He approached his bank for a $60,000 loan and was told that he needed accrual- based SCI and SFP before he would be approved. Knowing very little about accounting, he engaged you to prepare statements requested by the bank. He supplies you with the following information: Receipts Disbursements Investment S 60,000 Computer and office equipment 150,400 31,400 Operating expenses Supplies 25,400 Rent payments 25,200 Insurance premium 10,800 19,600 Wages of assistant 92,400 25,880 Telephone 174,000 Payments to James Kenna Received from customers 509,000 Cash balance 13,920 5569,000 Additional information .Equipment purchased includes a S4,000 computer purchased for Nick's son, for school projects. The amount received from customers includes a S10,000 deposit on a project to be done in January 20X6, but not yet started . Rent payments included S1,800 per month rental and S3,600 deposit. . The equipment has an estimated five-year life and 52,400 salvage value . . Supplies on hand 31 December 20X5 were $11,800 There were unpaid bills of S500 for cell phone, 31,080 for electricity, and S760 for travel at . December 20X5 Insurance premium was for a three-year policy that expires on 31 December 20X7 . . Wages eamed in the last week of December 20X5 to be paid in January 20X6 amounted to S1,800 Design revenue earned but not yet collected amounted to 582,800 . .The organization is set up as a company, the $174,000 withdrawn by Nick is $148,000 salary and 526,000 dividends Required Prepare the financial statements as requested During the first week of January 20X5, Nick Power began an energy-efficiency consulting company Power Smart Ltd. He kept no formal accounting records; however, his record of cash receipts and disbursements was accurate. The business got off to a strong start, but Nick soon needed financing for day-to-day expenses. He approached his bank for a $60,000 loan and was told that he needed accrual- based SCI and SFP before he would be approved. Knowing very little about accounting, he engaged you to prepare statements requested by the bank. He supplies you with the following information: Receipts Disbursements Investment S 60,000 Computer and office equipment 150,400 31,400 Operating expenses Supplies 25,400 Rent payments 25,200 Insurance premium 10,800 19,600 Wages of assistant 92,400 25,880 Telephone 174,000 Payments to James Kenna Received from customers 509,000 Cash balance 13,920 5569,000 Additional information .Equipment purchased includes a S4,000 computer purchased for Nick's son, for school projects. The amount received from customers includes a S10,000 deposit on a project to be done in January 20X6, but not yet started . Rent payments included S1,800 per month rental and S3,600 deposit. . The equipment has an estimated five-year life and 52,400 salvage value . . Supplies on hand 31 December 20X5 were $11,800 There were unpaid bills of S500 for cell phone, 31,080 for electricity, and S760 for travel at . December 20X5 Insurance premium was for a three-year policy that expires on 31 December 20X7 . . Wages eamed in the last week of December 20X5 to be paid in January 20X6 amounted to S1,800 Design revenue earned but not yet collected amounted to 582,800 . .The organization is set up as a company, the $174,000 withdrawn by Nick is $148,000 salary and 526,000 dividends Required Prepare the financial statements as requested
