Question

Part B (16 marks) The Adjusted Trial Balance for World Travel as at 30 June 2017 is presented as follows: Credit (8) 319 000 WORLD TRAVEL Adjusted Trial Balance as at 30 June 2017 Debit (S) Account 195 540 Cash at bank 297 700 Accounts receivable 10 200 Prepaid insurance Office supplies 1 500 Vehicles 920 000 Accumulated depreciation - vehicles Land 670 000 Accounts payable Wages payable Mortgage payable (due 30 June 2024) A. Fung. Capital A. Fung, Drawings 61 080 Touring service revenue Car rental revenue Depreciation expense - vehicles 39 900 Office supplies expense 300 Repair expense 63 000 Electricity expense 40 700 Insurance expense 39 360 Wages expense 311 100 369 000 10 000 123 080 1 006 220 795 800 27 280 $2650 380 $2.650 380 Required: 1) Calculate the balance of A. Fung, Capital as at 30 June 2017. Show your workings. (4 marks)

Answer 1

Answer

--Requirement 1

A Fung, Capital - Beginning	$1,006,220
Add: Net Income [see working]	$328,720
Less: A Fung, Drawings	$61,080
A Fung, Capital - Ending on 30 June 2017	$1,273,860	Answer

--Working

Revenues:
Car rental revenue	$795,800
Car rental Revenue	$27,280	$823,080
Expenses
Depreciation expense	$39,900
Office Supplies expense	$300
Repair expenses	$63,000
Electrivity Expense	$40,700
Insurance expense	$39,360
Wages Expenses	$311,100	$494,360
Net Income (Loss)		$328,720