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LM Limited started business on 1 November 2019. During the first month in business the following transactions occurred:
a Issued share capital, $200 000.
b Paid one month’s rent of $4000.
c Provided services to customers on credit, $60 000; $22 000 of
this amount had been received by the end of the month.
d Paid wages of $14 000. An additional $2000 in wages is owed at
the end of the month for work done during November.
e Received a $3000 bill for ma
intenance work done during
November; the bill will be paid in December.
REQUIRED:
1 Prepare an income statement for the month of November 2019.
2 Prepare a balance sheet at 30 November 2019.
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