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.

Income Statement:

Fully narrative Balance Sheet:

Statement of Changes in Equity

Answer 1

Income Statement
Revenue
Service Revenue	$       282,600
Total Revenue		$       282,600
Expenses
Depreciation Expense - Equipment	$            8,600
Rent expense	$          32,000
Wages Expense	$       135,400
Electricity Expense	$            7,500
Total Expenses		$       183,500
Net Income		$         99,100

Statement of Owner's Equity
Beginning Balance, Capital	$       118,400
Add: Net Income	$          99,100
	$       217,500
Less : Drawings	$            4,000
Ending Balance, Capital	$       213,500

Balance Sheet
Assets
Current Assets
Cash	$          75,800
Accounts receivable	$            7,500
Supplies	$            3,900
Prepaid Rent	$          14,500
Total Current Assets		$       101,700
Equipment	$       235,200
Less : Accumulated Depreciation	$          -8,600
Total Property Plant and Equipment		$       226,600
Total Assets		$       328,300
Liabilities & Stockholder's Equity
Current Liabilities
Accounts payable	$          52,700
Wages Payable	$          12,500
Unearned Revenue	$          11,600
Total Current Liabilities		$         76,800
Non-Current Liabilities
Bank Loan		$          38,000
Total Liabilities		$       114,800
Owner's Equity
Capital	$       213,500
Total Owner's Equity		$       213,500
Total Liabilities & Owner's Equity		$       328,300