The post-closing trial balance at 30 June 2020 of Payneham Professional Services is shown below. Transactions completed during the year ended 30 June 2021 are summarised below:

1.		Collections on accounts receivable totalled $83,700.
2.		Consulting fees of $89,910 plus GST of 10% were receivable during the year. Clients are invoiced after services are provided and are given 30 days in which to pay.
3.		Rent paid in advance was $14,870, plus GST.
4.		Office supplies were purchased during the year for $390 plus GST in cash and $430 plus GST on credit.
5.		Tat withdrew $25,500 for private use.
6.		Salary payments amounted to $32,580, of which $430 was for salaries accrued in the year ended 30 June 2019.
7.		Advertising totalling $3,430 plus GST was purchased on credit.
8.		Electricity expense of $3,670 plus GST was paid.
9.		Accounts payable of $2,940 were paid.
10.		GST payable of $9,300 less GST receivable of $2,450 were forwarded in cash during the year to the Australian Taxation Office.
The following additional information should be considered for adjusting entries:
11.		Unused office supplies on hand at the end of the year totalled $780.
12.		Depreciation on the furniture and equipment is $4,690.
13.		Salaries earned but not paid amount to $1,200.
14.		Rent paid in advance in transaction 3. Rent for 6 months of $7,435 plus GST was paid in advance on 1 August and 1 February.

Account

Account no

Debit

Credit

Cash at bank

1100

$15,100

Accounts receivable

1101

9,630

Prepaid rent

1102

1,240

GST receivable

1105

2,280

Office supplies

1106

1,350

Furniture and equipment

1110

29,290

Accumulated depreciation ― furniture and equipment

1111

$9,910

Accounts payable

2200

5,550

Salaries payable

2201

430

GST payable

2203

5,220

Tat Chiang, capital

3000

37,780

$58,890

$58,890

Question: Prepare an income statement, a statement of changes in equity and a balance sheet. (List items that increase owner's equity first. Determine the net of GST receivable and GST payable and enter this amount as GST payable in the balance sheet.)

PAYNEHAM PROFESSIONAL SERVICES

INCOME STATEMENT FOR THE YEAR ENDED 30 JUNE 2021

		$
	$
		$

PAYNEHAM PROFESSIONAL SERVICES

STATEMENT OF CHANGES IN EQUITY FOR THE YEAR ENDED 30 JUNE 2021

	$
	$

Payneham Professional Services
Balance sheet
as at 30 June 2021

Assets

	$
		$
		$

Liabilities

	$
		$

Equity

	$
	$

Transcribed Image Text:

Book to Tax Reconciliation Workpaper Company Name: Aspen Ridge LP Year End: W/P Ref. December 31, 2020 Income per Book +/(-)Federal Income Tax Expense (Refund) PERMANENT DIFFERENCES + Officer's Life Insurance Expense + Non-Deductible Penalties & Fines + Nondeductible Meals & Entertainment Expense Tax Exempt Interest +/- Other: TEMPORARY DIFFERENCES +Book Depreciation Tax Depreciation +/- Completed contract over % completion for book +/- Completed contract over % completion for tax -/(+) Book Gain/(Loss) on Sale of F/As +/(-) Tax Gain/(Loss) on Sale of F/As (-)/+ Accrued Expenses Due 50% or More Shareholders and Related Parties Salaries and Bonuses - Uniform Capitalization Prior Year + Uniform Capitalization Current Year Sec. 481(A) Adjustments: + Change in Accounting Method + Bad Debt Expense - Book - Bad Debt Expense - Tax +Vacation pay accrual (unpaid at 2.5 months) -Prior year accrued vacation paid in current year +/- Other: +Guaranteed Payments 35,000 TAXABLE INCOME (Before pass-through items) SCH. K PASS-THROUGH ITEMS (Loss or Deduction (+); Income or Gain (-)): -/(+) Rental Income/(Loss) - Portfolio Income (Interest and Dividends) -/(+) Capital Gains/(Losses) -/(+) 1231 Gains/(Losses) + Section 179 Expense Election 17,300 + Charitable Contributions 3,300 (35,000) Guaranteed Payments +/-Other: ORDINARY INCOME per Page 1 Goal: (Prior) Current CURRENT YEAR 900 1,120 253,160 2,020 35,000 290,180 (14,400) 275,780 225,830 PRIOR YEAR Book to Tax Reconciliation Workpaper Company Name: Aspen Ridge LP Year End: W/P Ref. December 31, 2020 Income per Book +/(-)Federal Income Tax Expense (Refund) PERMANENT DIFFERENCES + Officer's Life Insurance Expense + Non-Deductible Penalties & Fines + Nondeductible Meals & Entertainment Expense Tax Exempt Interest +/- Other: TEMPORARY DIFFERENCES +Book Depreciation Tax Depreciation +/- Completed contract over % completion for book +/- Completed contract over % completion for tax -/(+) Book Gain/(Loss) on Sale of F/As +/(-) Tax Gain/(Loss) on Sale of F/As (-)/+ Accrued Expenses Due 50% or More Shareholders and Related Parties Salaries and Bonuses - Uniform Capitalization Prior Year + Uniform Capitalization Current Year Sec. 481(A) Adjustments: + Change in Accounting Method + Bad Debt Expense - Book - Bad Debt Expense - Tax +Vacation pay accrual (unpaid at 2.5 months) -Prior year accrued vacation paid in current year +/- Other: +Guaranteed Payments 35,000 TAXABLE INCOME (Before pass-through items) SCH. K PASS-THROUGH ITEMS (Loss or Deduction (+); Income or Gain (-)): -/(+) Rental Income/(Loss) - Portfolio Income (Interest and Dividends) -/(+) Capital Gains/(Losses) -/(+) 1231 Gains/(Losses) + Section 179 Expense Election 17,300 + Charitable Contributions 3,300 (35,000) Guaranteed Payments +/-Other: ORDINARY INCOME per Page 1 Goal: (Prior) Current CURRENT YEAR 900 1,120 253,160 2,020 35,000 290,180 (14,400) 275,780 225,830 PRIOR YEAR

Answer rating: 100% (QA)

Income statement The income statement of the company is given below Particulars Consulting fees Less Expenses Salary expense Payneham Professional Ser... View the full answer