Reference no: EM133018310
Question - For Mr Tom's business (Future) at the end of the 30 June 2019 reporting period is shown below.
Retained earnings (30 June 2018) 8,000
Cash 13,000
Prepaid insurance 325
Rent expense 14,750
Plant and equipment 62,500
Receivables 7,000
Accumulated depreciation - plant and equipment 14,650
Accounts payable 10,300
Office supplies 600
Depreciation expense 10,325
Salaries payable 3,000
Share capital (30 June 2019) 37,500
Service revenue 89,000
Rent revenue 7,000
Rent received in advance 6,000
Supplies expense 8,750
Insurance expense 1,050
Salaries expense 57,150
Required -
1. Prepare a statement of profit or loss for FUTURE Pty Ltd for the period ended 30 June 2019.
2. Determine the equity balance at the end of the year at 30 June 2019.
3. Although accounting provides a wide range of information for both internal and external users, for decision-making purposes users need to consider carefully a number of limitations that the accounting information has. Discuss two of these limitations.