UNeedit Sports Store, a business owned by Penny Needham, had the following assets and liabilities as at the financial years ended 30th June, 20X1 and 20X2:

Required:
a What is the owner’s equity at the end of each financial year?
b If Penny contributed an extra $10 000 and made no drawings, what must the profit or loss have been using the above balances?
c If Penny contributed an extra $ but also withdrew $5000 as drawings. what must the profit or loss have been using the above balances?

Transcribed Image Text:

20X1 20X2 Assets Cash at bank $13000 $15 000 Accounts receivable 22 000 24 000 Prepaid expenses 3 600 3 900 Land & building 60 000 75 000 Motor vehicles 28 000 25 000 Liabilities Accounts payable 5 600 6 700 GST payable 9 000 4 500 Accounts: Loan 45 000 55 000