Accounting Business Reporting for Decision Making

144 Accounting: Business Reporting for Decision Making

SOLUTION TO 4.2

December

2016 Cash

Accounts

receivable

Office

furniture Equipment

Accounts

payable Equity

Profit

or loss

5 200 000 200 000

8 (460) 460

9 1 340 1 340

10 (130) (130)

11 (2 400) (2 400)

12 1 750 1 750

14 1 300 1 300

15 (790) (790)

16 10 000 10 000

17 1 800 1 800

19 1 800 (1 800)

21 1 356 1 356

Balance $210 660 $0 $460 $3 106 $3 106 $210 000 $1 120

Graceville Professional Services

Statement of profit or loss for period ending 31 December 2016

Income

Fees revenue $4 440

Expenses

Electricity

Wages

Rent

$ 130

790

2 400 3 320

Profit $1 120

Graceville Professional Services

Balance sheet as at 31 December 2016

Assets

Current assets

Cash $ 210 660

Non-current assets

Equipment

Office furniture

3 106

460 3 566

Total assets $ 214 226

Liabilities

Current liabilities

Accounts payable 3 106

Total liabilities 3 106

Net assets $ 211 120

Equity

Capital — D Burton

Profit

210 000

1 120

Total equity $ 211 200