Dawson Industries began operations early in January 2020. On 31 December 2020, records showed the following asset, liability, equity, income and expense amounts.

Required

(a) Prepare an income statement for Dawson Industries for the year ended 31 December 2020.

(b) Prepare a balance sheet as at 31 December 2020.

(c) Prepare a statement of changes in equity for 2020.

(d) Explain the difference between the items ‘supplies’ and ‘supplies expense’.

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Accounts receivable Rent expense Cash at bank Supplies expense Accounts payable Service income Supplies Equipment $ 25600 13 500 10250 5250 9 500 147 500 11 000 48 000 Lila Dawson, Capital Electricity expense Telephone expense Advertising expense Insurance expense Wages expense Drawings ? 7 200 4900 12 500 2500 44 000 23 400