Presented below is the adjusted trial balance of Brown Investment Advisers as at 30 June 2021. Brown Investment Advisers Trial Balance As at 30 June 2021 Debit $ Credit $ Cash at Bank 34,300 Accounts Receivable 9,100 Office Supplies 2,100 Prepaid Insurance 7,000 Equipment 203,000 Accumulated Depreciation - Equipment 1,750 Accounts Payable 18,200 Salary Payable 3,150 Interest Payable 350 Revenue received in advance 5,600 Loan Payable (4 Years) 140,000 Brown’s, Capital 52,500 Brown’s, Drawings 2,800 Service Revenue 61,600 Insurance Expense 4,900 Salary Expense 16,800 Supplies Expense 350 Depreciation Expense - Equipment 1,750 Interest Expense 1,050 283,150 283,150 Required: a) Prepare Brown Investment Advisers Income Statement for the year ended 30 June 2021. b) Prepare Brown Investment Advisers Statement of Changes in Equity for the year ended 30 June 2021. c) Calculate Brown Investment Advisers Profit Margin and Return on Assets ratios (the total assets at 30 June 2020 was $248,500) (Round off the answers to the nearest 2 decimal places).
Presented below is the adjusted
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Brown Investment Advisers |
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Trial Balance |
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As at 30 June 2021 |
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Debit $ |
Credit $ |
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Cash at Bank |
34,300 |
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9,100 |
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Office Supplies |
2,100 |
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Prepaid Insurance |
7,000 |
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Equipment |
203,000 |
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1,750 |
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Accounts Payable |
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18,200 |
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Salary Payable |
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3,150 |
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Interest Payable |
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350 |
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Revenue received in advance |
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5,600 |
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Loan Payable (4 Years) |
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140,000 |
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Brown’s, Capital |
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52,500 |
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Brown’s, Drawings |
2,800 |
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Service Revenue |
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61,600 |
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Insurance Expense |
4,900 |
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Salary Expense |
16,800 |
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Supplies Expense |
350 |
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Depreciation Expense - Equipment |
1,750 |
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Interest Expense |
1,050 |
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283,150 |
283,150 |
Required:
a) Prepare Brown Investment Advisers Income Statement for the year ended 30 June 2021.
b) Prepare Brown Investment Advisers Statement of Changes in Equity for the year ended 30 June 2021.
c) Calculate Brown Investment Advisers Profit Margin and Return on Assets ratios (the total assets at 30 June 2020 was $248,500) (Round off the answers to the nearest 2 decimal places).
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