Question

Question 1 Preparing Financial Statements
Financial data for Safety Hire as of 30 June 2019 are:
$ 63000
170 000
40000
Accounts receivable
Equipment hire income
Acoounts payable
Michael Donato capital
Cash at bank
Mortgage payable
Building
Wages expense
Advertising expense
Land
Hire equipment
Loan payable
Electricity expense
Telephone expense
$ 75000
30 000
75000
180 000
50000
18000
7 500
45000
130000
85000
Required:
Prepare an income statement for the month of June and a balance sheet in account format
for Safety Hire as at 30 June 2019.​

Answer 1

Answer:

Nominal versus effective interest rate

For example, a nominal annual interest rate of

12% based on monthly compounding means a

1% interest rate per month (compounded).