The Following Information Was Prepared for Xi Services as at 30

question 28

Essay

The following information was prepared for Xi Services as at 30 June 2014.
$\begin{array}{lr}&\text { Assets Expenses }&\text { Liabilities Owner's }\\&&\text { Equity Income }\\&\$&\$\\\text { Bank } & 10,000 \\\text { Prepaid insurance } & 4,000 \\\text { Accounts payable } &&15,000\\\text { Secretarial expenses }&35,000\\\text { Mortgage loan payable } 1 \text { Aug } 2017&&210,000\\\text { Salaries expense } & 55,000 \\\text { Land and buildings } & 420,000\\\text { Capital Xi } 1 \text { July } 2013&&20,000\\\text { Accounts receivable } & 52,000 \\\text { Income } &&217,000 \\\text { Equipment } & 90,000\\text { Accumulated depreciation equipment }&&24,000\\&\$666,000&\$666,000\end{array}$
Additional information available at 30 June 2014:
1.Interest expense outstanding is $4,500.
2.An allowance for doubtful debts is to be created for $1,500.
3.Depreciation of equipment is at the rate of 15% p.a.using the reducing-balance method.
4.$2,500 of the prepaid insurance has been used-up during the year
REQUIRED:
Incorporating all the above information,prepare:
a)an Income Statement for the year ended 30 June 2014.
b)a statement of financial position as at 30 June 2014.

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Definitions:

Commodity Prices

The market rates assigned to raw materials (such as oil, gold, and grains), which are traded on various exchanges and can fluctuate based on supply and demand forces.

Blue-collar Workers

Employees who engage in manual labor or skilled trades, often distinguished by the physical nature of their work and hourly wages.

Quadrupled

To increase fourfold or multiply by four, often used in describing growth or expansion in quantitative terms.

Growing Population

The increase in the number of individuals in a population, often discussed in the context of social, economic, and environmental impacts.