1. Can a business earn a gross profit but incur a net loss? Explain. 2. The following partial transactions were completed by MCO Enterprise during April 2020. MCO Enterprise, owned by Puan Adibah, uses the perpetual inventory system. April 1 Purchased RM95,000 of merchandise on account from manufacturer, GR8 Bhd, terms FOB shipping point, 4/10, n/30. Prepaid freight of RM600 was added to the invoice. 6 Returned RM5,000 of the merchandise purchased on April 1. 9 Paid to GR8 Bhd for the purchase on April 1 less the return and discount. Sold merchandise on account to Perniagaan Mesra, RM14,000, terms FOB destination, 2/10, n/30. The cost of merchandise sold was RM7,000. 21 Paid transportation costs of RM200 for delivery of merchandise sold to Perniagaan Mesra on April 18. 27 Received payment from Perniagaan Mesra for the sale on April 18. 18 Required: a) Compute the amount of purchase discount received from GR8 Bhd on April 9, 2020. b) Journalise the entries to record the above transactions of MCO Enterprise for April 2020. c) On April 30, 2020, the balances of the accounts appearing in the ledger of MCO Enterprise are as follows: Account Accumulated Depreciation - Building Adibah, Capital Adibah, Drawing Administrative Expenses Building Cash Cost of Merchandise Sold Interest Expense Merchandise Inventory Notes Payable Office Supplies Salaries Payable Sales Selling Expenses Store Supplies RM 620,000 1,640,000 220,000 135,000 2,900,000 165,000 950,000 2,500 245,000 83,350 18,000 13,000 1,602,500 178,750 70,000 You need to prepare a Multiple-Step Statement of Statement of Profit or Loss and Other Comprehensive Income for the year ended April 30, 2020 for MCO Enterprise. 3. Encik Rashid owns an established mini market in Taman PKNK, Alor Setar named Untung Mini Market. The following data for Untung Mini Market, are taken from the ledger after adjustments on December 31, 2019 the end of the fiscal year. As a newly hired account clerk, you are required to prepare these statements according to the current practice in Malaysia: (a) a Multiple-Step Statement of Statement of Profit or Loss and Other Comprehensive Income, (b) a Statement of Changes in Equity, and (c) a Statement of Financial Position. Account Accounts Payable Accounts Receivable Accumulated Depreciation - Office Equipment Accumulated Depreciation - Store Equipment Administrative Expenses Cash Cost of Merchandise Sold Encik Rashid, Capital Encik Rashid, Drawing Interest Expense Merchandise Inventory Notes Payable, Due 2022 Office Equipment Prepaid Insurance Rent Revenue Salaries Payable Sales Sales Discounts Sales Returns and Allowances Selling Expenses Store Equipment Supplies RM 97,200 64,300 72,750 162,1000 56,500 53,000 121,700 81,750 52,000 12,000 93,250 154,000 149,750 6,500 17,500 28,700 401,700 12,200 24,000 41,500 325,000 4,000