Question

Pam Jones owns a business named Sunny Renovation. Below is the account information of Sunny Renovation at 30 June 2019.

Cash in Bank	$ 45,600		Accounts receivable	$235,200
Supplies	52,800		Prepaid Insurance	16,000
Accounts payable	67,400		Unearned revenue	18,000
Service income	372,000		Salary expense	222,000
Pam Jones, Capital	?		Equipment	130,000

  
Required:
Using the accounting equation, prepare the balance sheet for Sunny Renovation at 30 June 2019 (please use the narrative/vertical format).

Answer 1

Balance Sheet for Sunny Renovation
As on 30 June 2019
ASSETS	VALUE($)
Cash in Bank	$45,600
Supplies	$52,800
Accounts Receivable	$235,200
Prepaid Insurance	$16,000
Equipment	$130,000
Total Assets	$479,600
LIABILITIES	VALUE($)
Accounts Payable	$67,400
Unearned Revenue	$18,000
Capital- Balance - $244200
Add: Income       $150000	$394,200
	$479,600
Income Statement
Service Revenue	$372,000
Salary Expense	$222,000
Net Income	$150,000

answered by: anonymous