Question 3(16 marks)

You have been so helpful to Sahra that she has recommended you to a friend of hers, Jed Skee. Jed set up Surfs Up in October 2019 which sells Surf Skis. Jed completed a basic bookkeeping course before he commenced his business and is able to prepare his businesss accounting information up to the point of the Trial Balance but requires your assistance in preparing the financial statements.

Surfs Up Trial Balance for the year ended 30th June 2020	Debit ($)	Credit ($)
Telephone Expense	4 200
Cash at Bank	171 864
Loan Payable		114 240
Warehouse	336 000
Capital		420 000
Council Rates Expense	1 008
Supplies on Hand	15 708
Accounts Payable		5 208
Sales		74 256
Accounts Receivable	41 076
Equipment	30 240
Fuel Expense	13 608
Totals	613 704	613 704

Required:

Prepare an Income Statement, Statement of Changes in Equity and a Balance Sheet below with information from the Trial Balance provided above.

Please note the client has not provided you with a template. You are expected to prepare the financial statement format yourself however, the client does prefer the use of a table. Ensure that the financial statements are not embedded as pictures (see assignment requirements listed on page 1).