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RAC 4.1.1 The accounting cycle revision (I Spy Investigations) Spy Investigations started operation on 1 June 2021. The business prepares financial reports on yearly basis. The adjusted trial balance for the year ended 30 June 2021 is presented below. I Spy Investigations Trial Balance (Adjusted) For the year ended 30 June 2021 Accounts Debits Credits Cash at bank 4,850 Accounts receivable 800 Supplies 950 Accounts payable 900 Capital 8,000 Service revenue 1,200 Advertising expense 1,500 Wages expense 2,000 Totals 10,100 10,100 A. Calculate the ending balance of Capital as at 30 June 2021 for the business: Ending Capital=8,000+1,200-1500-2,000-$5,700 The following transactions occurred for the business during the financial year ended 30 June 2022 20/07/2021 The owner contributed $40,000 cash to the business. 15/08/2021 Paid accounts payable $900. 20/08/2021 Received $800 cash for serviced provided and recorded in June 2021. 02/10/2021 Received $4,000 cash for services provided. 01/11/2021 Paid annual insurance premium of $1,800 01/12/2021 Purchased equipment for $20,500. 20% cash deposit was paid and the remaining balance was on credit. 23/01/2022 The owner withdrew $800 cash for personal expenses. 12/02/2022 Paid $2,200 wages to casual staff. 10/03/2022 Provided services for $5,000 and received 30% cash. The remaining balance is on credit. 15/04/2022 Received $3,000 cash in advance for services to be provided 15/05/2022 Purchased some supplies for $1,500 cash. RAC 4.1.1 The accounting cycle revision (I Spy Investigations) Spy Investigations started operation on 1 June 2021. The business prepares financial reports on yearly basis. The adjusted trial balance for the year ended 30 June 2021 is presented below. I Spy Investigations Trial Balance (Adjusted) For the year ended 30 June 2021 Accounts Debits Credits Cash at bank 4,850 Accounts receivable 800 Supplies 950 Accounts payable 900 Capital 8,000 Service revenue 1,200 Advertising expense 1,500 Wages expense 2,000 Totals 10,100 10,100 A. Calculate the ending balance of Capital as at 30 June 2021 for the business: Ending Capital=8,000+1,200-1500-2,000-$5,700 The following transactions occurred for the business during the financial year ended 30 June 2022 20/07/2021 The owner contributed $40,000 cash to the business. 15/08/2021 Paid accounts payable $900. 20/08/2021 Received $800 cash for serviced provided and recorded in June 2021. 02/10/2021 Received $4,000 cash for services provided. 01/11/2021 Paid annual insurance premium of $1,800 01/12/2021 Purchased equipment for $20,500. 20% cash deposit was paid and the remaining balance was on credit. 23/01/2022 The owner withdrew $800 cash for personal expenses. 12/02/2022 Paid $2,200 wages to casual staff. 10/03/2022 Provided services for $5,000 and received 30% cash. The remaining balance is on credit. 15/04/2022 Received $3,000 cash in advance for services to be provided 15/05/2022 Purchased some supplies for $1,500 cash