Question 2

PM Consultants operates a number of Consultancy firms (Perth and Adelaide). The following information is relating to a number of accounts presented in the Trial Balance of PM Consultants (post adjustments) for the year ending 30th June 2020.

Accounts

$

Accounts payable

85 000

Telephone expense

35 000

Service revenue

750 000

Buildings

650 000

Office equipment

18 000

Cash at Bank

71 020

Advertising expense

28 000

Accounts receivable

108 000

Salaries & Wages

200 500

Mortgage payable

900 000

Office supplies

38 000

Capital

400 000

Office materials expense

137 565

Drawings

67 500

Land

360 000

Rent expense

65 350

Utilities (gas/water, etc.)

39 500

Required:

1. From the information provided, prepare the Income Statement for PM Consultants
2. In your own words discuss the difference between profit or loss and comprehensive income.

(Number of words limit 100 - 150)