Michael J owns renovation business under the name New Home. Financial data for New Home as of 30 June 2019 are shown as below:

	$		$
Accounts receivable	109,500	Wages expense	117,000
Renovation revenue	300,000	Advertising expense	48,000
Interest income	13,500	Prepaid insurance	13,500
Accounts payable	132,000	Insurance expense	10,500
Cash at bank	72,000	Equipment	285,000
Michael J, capital	?

Required:

1. Prepare an income statement for the business for the year ending 30 June 2019.
2. Prepare a balance sheet in narrative format for New Home as at 30 June 2019.