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Ken, a resident, is a handyman who contracts with people to do a variety of jobs including repairing fences, fixing household items and small painting jobs. As part of this work, Ken is occasionally required to supply materials such as wood, nails and paint. Ken provides you with the following information that is relevant to the year ended 30 June 2012:

Received $78,000 from customers during the year for work performed during the year.

An amount of $7,500 is owing to Ken at 30 June 2012 for work performed during the year. Ken expects to receive this amount in July 2012.

Received a cheque for an unfranked cash dividend of $570 from an Australian resident company on 6th July 2012 where the dividend was paid on 27th June 2012 by the company.

Received interest income of $3,600 on 1 July 2012 from 12 month term deposit that was invested with the Commonwealth in Toowoomba on 1 July 2011.

Required:

Based on this information advise Ken as to what amount he should include in his assessable income for the year ended 30 June 2012?

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Accounting Basics, Accounting

Category:- Accounting Basics
Reference No.:- M9516926

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