Determine the profit or loss for the year

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Reference no: EM133560506

Question 1:

5.17 Agularde, a business owned by sole trader David Felt, had the following assets and liabilities as at the financial years ended 30 June 2022 and 30 June 2023.

	30 June 2023	30 June 2022
Assets
Cash at bank	$15 000	$6 000
Accounts receivable	24 000	15 000
Prepaid insurance	5 000	2 500
Equipment (net)	7 000	6 000
Vehicle (net)	70 000	80 000
Liabilities
Accounts payable	26 000	17 500
Accrued expenses	5 000	8 000
Bank loan	35 000	57 500

Required

What is the equity as at the end of each of the two financial years?

If David contributed an extra $15 ?000 capital during the financial year ending 30 June 2023 and made no drawings, determine the profit (or loss) for the year, assuming the above balances remain the same.

If David had contributed an extra $20 000 and withdrew $15 ?000 during the year ending 30 June 2023, determine the profit (or loss) for the year, assuming the above balances remain the same.

Reference no: EM133560506

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