Evans Ltd was started on 1 July 2015 with an investment of $150 000 cash. Following are the assets and liabilities of the company on 30 June 2016, and the revenues and expenses for the year of operations.

No further shares were issued during the year, but a dividend of $20 000 in cash was paid. 

Required

Prepare a statement of profit or loss, a calculation of retained earnings for the year, and a statement of financial position as at 30 June 2016. 

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Cash Accounts receivable Equipment (net) Service revenue Advertising expense Accounts payable $155 100 43 000 120 000 250 000 16 500 24 800 Bank loan Rent expense Repair expense Office expense Depreciation expense Insurance expense $90 000 37 500 700 68 000 30 000 24 000