Reference no: EM132559657

Question - Kim Soo offers tutoring services to first year university students. Kim has established a sole proprietorship business named KSHelp. The following information relates to the business activities for the end of the financial year 30 June 2020:

Account: $

Accounts payable 800

Accounts receivable 1,500

Accumulated depreciation - computer equipment 4,950

Accumulated depreciation - Motor vehicle 8,250

Advertising expense 510

Capital at beginning 14,500

Cash at bank 8,445

Computer equipment 8,250

Depreciation expense - computer equipment 1,650

Depreciation expense - Motor vehicle 2,750

Drawings 2,520

Loan 7,500

Motor vehicle 16,750

Motor vehicle expense 330

Office supplies 1,500

Office supplies used 840

Telephone charges 255

Tutoring fees earned 9,750

Required -

1. Prepare the Statement of Profit or Loss at 30 June 2020.

2. Explain the differing purpose and role of the Statement of Profit or Loss compared to a Statement of Financial Position and how the information contained in each might be useful to Kim Soo.