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The accountant of Paul Shop Fitter Private Limited has provided the following data on the Assets, Liabilities, Equity, Income and Expense amounts as at 30th
The accountant of Paul Shop Fitter Private Limited has provided the following data on the Assets, Liabilities, Equity, Income and Expense amounts as at 30th June 2021.
$ | $ | ||
Equipment | 221,800 | Supplies | 84,200 |
Prepaid Insurance | 24,000 | Cash in Bank | 88,400 |
Accounts receivable | 182,800 | Accounts payable | 101,100 |
Capital | ? | Bank loan | 30,000 |
Service income | 1,158,000 | Salary expense | 483,000 |
Advertising expense | 15,000 | Supplies expense | 142,500 |
Required:
- Prepare a Balance Sheet in the narrative (vertical) format as at 30th June 2021. (5 marks)
- Explain what key information the Balance Sheet provides to users of the financial statements. (2 marks)
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