Question 3 (40 marks) Fung Wong Advertising Company Limited provides consulting service for different companies on various media The unadjusted trial balance of Fung Wong Advertising Company at 31 July 2020, and the related information are as follows Fung Wong Advertising Company Unadjusted Trial Balance As at 31 July 2020 Accounts Debit ($) Credit ($) Cash 40,800 Accounts Receivable 11,600 Prepaid Rent 4,000 Supplies 800 Furniture 28,800 Accumulated Depreciation 3,600 Accounts Payable 3,300 Salary Payable Share Capital 71,000 Dividend 4,000 Consulting Service Revenue 15,000 Salary Expense 2,400 Rent Expense Utilities Expense 500 Depreciation Expense Supplies Expense Total 92,900 92,900 The following information is available Consulting service revenue earned during the month amounting to $3,900 needs to be accrued at 31 July Supplies on hand at 31 July have a cost of $400 Depreciation on furniture for the month of July has not been recorded The estimated useful life of the furniture is 4 years Assume straight line depreciation and no residual value Accrued salaries expense at 31 July was for 1 day only The 5 day weekly payroll is $1,000 The prepaid rent relates to the period between July and October (4 months in total) $500 was distributed for dividend but was recorded as salary expense Required (a) Prepare the adjusting entries for items i to vi above (18 marks) (b) Prepare the statement of profit or loss (income statement) for the month ended 31 July 2020 and the statement of financial position (balance sheet) as at 31 July 2020 (22 marks)

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Question 3 (40 marks) Fung Wong Advertising Company Limited provides consulting service for different companies on various media. The unadjusted trial balance of Fung Wong

Question 3 (40 marks)

Fung Wong Advertising Company Limited provides consulting service for different companies on various media. The unadjusted trial balance of Fung Wong Advertising Company at 31 July 2020, and the related information are as follows:

Fung Wong Advertising Company Unadjusted Trial Balance As at 31 July 2020
Accounts	Debit ($)	Credit ($)
Cash	40,800
Accounts Receivable	11,600
Prepaid Rent	4,000
Supplies	800
Furniture	28,800
Accumulated Depreciation		3,600
Accounts Payable		3,300
Salary Payable		-
Share Capital		71,000
Dividend	4,000
Consulting Service Revenue		15,000
Salary Expense	2,400
Rent Expense	-
Utilities Expense	500
Depreciation Expense	-
Supplies Expense	-
Total	92,900	92,900

The following information is available:

Consulting service revenue earned during the month amounting to $3,900 needs to be accrued at 31 July.

Supplies on hand at 31 July have a cost of $400.

Depreciation on furniture for the month of July has not been recorded. The estimated useful life of the furniture is 4 years. Assume straight- line depreciation and no residual value.

Accrued salaries expense at 31 July was for 1 day only. The 5-day weekly payroll is $1,000.

The prepaid rent relates to the period between July and October (4 months in total).

$500 was distributed for dividend but was recorded as salary expense.

Required:

(a)	Prepare the adjusting entries for items i to vi above.	(18 marks)

(b)	Prepare the statement of profit or loss (income statement) for the month ended 31 July 2020 and the statement of financial position (balance sheet) as at 31 July 2020.	(22 marks)