Trang Nguyen operates a roofing business that specialises in replacing broken tiles and cleaning and repairing roofs and gutters. He began business in April 2016 but has not yet established a formal set of records. His son, Tram, has prepared cash receipts and payments statements for each of the first 3 months of the business, but Trang Nguyen is worried about relying on them. He asks you to prepare a ‘proper’ set of financial statements for the month of June.

By reviewing the bank statements, cheque butts, invoice files and other data, you derive a set of balance sheets at 1 June and 30 June. These are shown below, followed by a statement of cash receipts and payments for March. GST is ignored.

	NGUYEN ROOFING SERVICE Balance Sheets
		1 June 2016			30 June 2016
	ASSETS Cash at bank Accounts receivable Supplies on hand Equipment Accumulated depreciation (credit)	$	9 280 7 220 4 100 62 000  (7 600)		$	15 480 9 280 4 640 74 400  (10 300)
		$	75 000		$	93 500
	LIABILITIES AND EQUITY Salaries payable Electricity account payable T. Nguyen, Capital	$	4 640 — 70 360		$	7 380 1 470 84 650
		$	75 000		$	93 500

	NGUYEN ROOFING SERVICE Statement of Cash Receipts and Payments for June 2016
	CASH RECEIPTS Received from credit customers Contributed by T. Nguyen	$	27 860 20 000
	Total cash receipts CASH PAYMENTS Paid for supplies purchased Purchase of equipment Payment of salaries Paid for June rent Sundry expenses Cash withdrawn by T. Nguyen		6 190 12 400 6 700 2 000 2 370 12 000		$	47 860
	Total cash payments					41 660
	Net increase in cash balance				$	6 200

Required

A. From the information, prepare an income statement on the accrual basis for the month of June. Hint: you may wish to prepare (reconstruct) relevant accounts.

B. Illustrate the apparent correctness of your profit amount by preparing a statement of changes in equity for June 2016.