Question

51.900 Cash $300 $275 Part Short Question 128 Marks) ALMA e-travel operates a travel agency that allows online customers to plan and pay for the trips through the ALMA website. At 31 July 2018 the business's accounting records show the following balances $ 24,800 Rent expense $1.000 Accounts receivable $5,700 Salary expense Supplies $400 Interest Expense $500 Prepaid rent $2.000 Supplies expense Loan $3.275 Depreciation expense Furniture $16.500 Interest Revenue $13.100 Accounts payable $400 Electricity and gas expense $950 Salary payable $3.000 Withdrawals by the owner ?? Service revenue $7,700 Capital Requirements: 1- Trial Balance as at 31 July 2018 (18 Marks) 2- Income statement for the year ended 31st July 2018. (10 marks) Page 3 of 4

Answer 1

Trail Balance Income Statement Item Debit Credit Service Revenue $7,700 Cash $24.800 Interest Revenue $ 500 Accounts Receivable $ 5,700 Total Revenue | $8.200 Supplies $ 400 Rent Expenses $1,000 Prepaid Rent $ 2,000 Salary Expenses $1,900 Loan $ 3,275 Interest Expenses $ 500 Furniture $ 16,500 Supplies Expenses $ 300 Accounts Payable $13,100 Depreciation Expenses $ 275 Salary payable $ 950 60050-13100-950-7700-500 Electricity & gas expenses $ 400 Capital $37,800 Total Expenses $4,375 Withdrawals by the owner $ 3,000 Net Income $3,825 Service Revenue $ 7,700 Interest Revenue $ 500 Rent Expenses $ 1,000 Salary Expenses $ 1,900 Interest Expenses $ 500 Supplies Expenses $ 300 Depreciation Expenses $ 275 Electricity & gas expenses $ 400 $60,050 $60,050