Question 2 - Financial Reporting Escape from LA is a business selling electrical goods owned and operated by Kurt Russell. The following adjusted trial balance has been prepared at year's end. Please see next page for requirements for this question. Credit (5 970 17 800 XXXX__117700 337 800 ESCAPE FROM LA - TRIAL BALANCE AS AT 30 JUNE 2019 Debit (5) Cash 32 600 Accounts Receivable 26 900 V Doubtful Debts Expense TE 1 700 V Inventory (1 July 2018) 43 100 Rent Expense AE 1 800 Interest Expense TE 1 500 Telephone Expense AZ Wages Expense AE 19 500 Accumulated Depreciation -- Equipment freight In Expense 4340 General Expense AZ 17 820 Capital (1 July 2018) V Drawings 17 500 Sales Income Sales Returns 22 450 Discount Allowed TE 7 450 Purchases 157 200 Purchases Returns COGS VDiscount Received Coles Freight Out Expense SE 2 150 Accounts Payable VEquipment 145 000 Electricity Expense AZ 2 840 Depreciation Expense - Equipment AZ 2 800 Loan Payable Allowance for Doubtful Debts Salaries Expense AE 37 720 Advertising Expense SE 4 750 V Prepaid Rent 6.950 Solo 5 200 1940 26 200 48 500 1 700 387040 VClosing Inventory at 30/6/19 was $52 700 Question 2 (Continued) Required: (a) Calculate the balance for Capital at 30th of June 2019. (2 marks) (b) Prepare a fully classified Income Statement for the year ended 30th June 2019. (10 marks) TOTAL FOR QUESTION 2: 12 marks