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

Let us Prepare the trial Balance
as on 30/6/2020 to find the capital amount

Yoga Guru
Trial Balance
As on 30/06/2020
Particulars	Dr $	Cr $
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		118,400
Rent Expense	32,000
Cash at Bank	75,800
Wages Expense	135,400
Supplies	3,900
Service Revenue		282,600
Bank Loan (due 2025)		38,000
Accounts Receivable	7,500
Drawings	4,000
Equipment	235,200
Depreciation Expense-Equipment	8,600
Total	524,400	524,400

  

Capital is the balancing amount in the trial balance above.

Yoga Guru
Income Statement for the year ended 06/30/2020
Particulras	Amt $
Service Revenue	282,600
Operating Expenses
Wages Expense	135,400
Electricity Expense	7,500
Depreciation Expense-Equipment	8,600
Rent Expense	32,000
Total Operating Expense	183,500
Operating Income	99,100
Interest	-
EBT	99,100
Tax	-
Net Income	99,100

Yoga Guru
Balance Sheet as on June 30,2020
Assets	Amt $	Liabilities & Equity	Amt $
Current Assets		Current Liabilities
Cash	75,800	Accounts Payable	52,700
Accounts Receivable	7,500	Wages Payable	12,500
Supplies	3,900	Unearned Revenue	11,600
Prepaid Rent	14,500	Total Current Liabilities	76,800
Total Current Assets	101,700
Fixed Assets		Non Current Liabilities -Notes Payable	38,000
Equipment	235,200	Equity
Accumulated Depreciation-Equipment	(8,600)	Capital	118,400
Net Fixed Assets	226,600	Retained Earning	99,100
		Drawings	(4,000)
		Total Stockholders'Equity	213,500
Total Assets	328,300	Total Liabilities & Equity	328,300

Yoga Guru
Statement of Change of Equity for the year ended 06/30/2020
Particulars	Amt $
Opening Balance Stockholders'Equity	118,400
Add -Transfer of Net Income for the year from Income statement	99,100
Less -Drwaings	(4,000)
Closing Balance Stockholders'Equity	213,500