Brighton Stationary is a small firm processing and selling office supplies. The firm has also sub-rented part of its unused space to another business. Brighton Stationary's most recent account balances at the end of the 31 December 2022 reporting period are presented below.
Depreciation expense $20 050
Accounts Payable $20 600
Office Supplies as at 31 December 2022. $200
Receivables $10 000
Equipment $120 000
Rent received in advance $12 000
Cost of supplies sold $17 500
Insurance expense $2100
Accumulated Depreciation- equipment as at 31 December 2022 Owner’s capital $14 700
owners capital $75 000
Salaries payable $6000
Salaries expense $100 300
Rent revenue $14 000
Retained earnings as at 1 January 2022 $16 000
Prepaid insurance $650
Rent expense $29 500
Cash $36000
Sales revenue $178 000
a) Prepare
i) Income statement for the year ended 31 December 2022.
ii) Balance sheet as at 31 December 2022.
b) Identify and describe potential users of Brighton Stationary financial statements.