Question

The following information relates to YogaGuru for the year ended 30 June 2020. Prepaid rent 14,500 Accounts payable 52,700 Electricity expense 7,500 Unearned revenue 11,600 Wages payable 12,500 Accumulated depreciation- Equipment 8,600 Capital ? Rent expense 32,000 Cash at bank 75,800 Wages expense 135,400 Supplies 3,900 Service revenue 282,600 Bank Loan (due in 2025) 38,000 Accounts receivable 7,500 Drawings 4,000 Equipment 235,200 Depreciation expense-Equipment 8,600 Required: Prepare an Income Statement , a fully classified Balance Sheet in narrative format and a Statement of Changes in Equity for the year ended 30 June 2020 for YogaGuru.

Answer 1

Balance Sheet

Assets	Amount
Cash	75800.00
Accounts Receivable	7500.00
Supplies	3900.00
Prepaid rent	14500.00
Total Current Assets	101700.00
Plant & Equipment	235200.00
Accumulated Depreciation	8600.00
Net Fixed Assets	226600.00
Total Assets	328300.00
Liabilities and Owners Equity
Accounts Payable	52700.00
Unearned revenue	11600.00
Wages payable	12500.00
Total Current Liabilities	76800.00
Long-term Debt	38000.00
Total Liabilities	114800.00
Capital(Bal Fig.)	213500.00
Total Liab. and Owners' Equity	328300.00

	Income Statement
	Revenue	282600
	Expenses-
	Electricity expense	7500
	Rent Expense	32000
	Wages	135400
		174900
	Net Income	107700
	Statement of change in equity
	Opening capital(bal fig)	109800
Add	Net Income	107700
Less	Drawings	4000
	Closing capital	213500