In: Accounting
George is the owner of Hornby’s Restaurant. George has asked you to support him with the preparation of a Balance Sheet and an Income Statement as of 30 June 2020. The information below was provided by George as at 30 June 2020.
Item |
$ |
Capital (at 1 July 2019) |
480,000 |
Bank loan (due in 2024) |
400,000 |
Plant and kitchen equipment |
55,000 |
Bank overdraft |
25,000 |
Accounts receivable |
50,000 |
Depreciation on fixed assets |
10,000 |
Drawings |
110,000 |
Accounts payable |
60,000 |
Cash in bank |
33,000 |
Food revenue |
35,000 |
Rental costs |
25,000 |
Employee wages |
95,000 |
Beverage revenue |
100,000 |
Land and restaurant buildings |
95,000 |
To help George, you are required to calculate the total amounts (as of 30 June 2020) for the following positions. Please provide for each position the calculations.
a) current assets
b) non-current assets
c) current liabilities
d) non-current liabilities
e) expenses
f) revenues
g) profit/(or loss)
h) equity
Computation of Current Asset | |
Account Receivable | $50,000.00 |
Cash | $33,000.00 |
Total Current Asset | $83,000.00 |
Computation of Non Current Asset | |
Plantt & Kitcheen Equipment | $50,000.00 |
Less; Depreciaiton on Fixed Asset | -$10,000.00 |
Land & Restaurent Building | $95,000.00 |
Total Non Current asset | $135,000.00 |
Computation of Current Liabilities | |
Bank Overdraft | $25,000.00 |
Accotn Payable | $60,000.00 |
Total Current Liabiltiies | $85,000.00 |
Computation of Expenses | |
Depreciaiton on Fixed Asset | $10,000.00 |
Rental Cost | $25,000.00 |
Employee Wages | $95,000.00 |
Total Expense | $130,000.00 |
Computation of Revenue | |
Food Revenue | $35,000.00 |
Beverage Revenue | $100,000.00 |
Total Revenue | $135,000.00 |
Computation of Profit / Loss | |
Total Revenue | $135,000.00 |
Less: Expense | $130,000.00 |
Profit | $5,000.00 |
Computation of Equity | |
Capital Beginning | $480,000.00 |
Less: Drawing | -$110,000.00 |
Aadd; Net Incom e | $5,000.00 |
Total Equity | $375,000.00 |
Computation of Non Current Liabilities | |
Bank Loan | $400,000.00 |
Total Non Current asset | $400,000.00 |