The accountant of Paul Shop Fitter Private Limited has provided the following data on the Assets, Liabilities,
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The accountant of Paul Shop Fitter Private Limited has provided the following data on the Assets, Liabilities, Equity, Income and Expense amounts as at 30th June 2021. $ $ Equipment 221,800 Supplies 84,200 Prepaid Insurance 24,000 Cash in Bank 88,400 Accounts receivable 182,800 Accounts payable 101,100 Capital ? Bank loan 30,000 Service income 1,158,000 Salary expense 483,000 Advertising expense 15,000 Supplies expense 142,500 Required:
a) Prepare a Balance Sheet in the narrative (vertical) format as at 30th June 2021. (5 marks)
b) Explain what key information the Balance Sheet provides to users of the financial statements. (2 marks)
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