Michael J owns renovation business under the name New Home
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:
a) Prepare an income statement for the business for the year ending 30 June 2019.
b) Prepare a balance sheet in narrative format for New Home as at 30 June 2019.