Explain what key information the balance sheet provide

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Reference no: EM132978759

Question: As at 30 June 2019, the Assets, Liabilities, Equity, Income Expense and amounts for Ronaldo Shop fitters Pty Ltd were listed as follows:

Cash in Bank $ 68,400 Accounts receivable $202,800

Supplies 79,200 Equipment 226,800

Accounts payable 101,100 Capital ?

Service income 1,158,000 Salary expense 483,000

Prepaid Insurance 24,000 Supplies expense 142,500

Bank loan 30,000

Advertising expense 15,000

Required:

a) Balance Sheet in narrative (vertical) format as at 30 June 2019.

b) Explain what key information the Balance Sheet provides to users of the financial statements.

Reference no: EM132978759

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