2 ...2/- Answer ALL questions below. Question 1 The unadjusted trial balance and the adjustment data for Robin Training Institute are given below along with adjusting entry information. Robin Training Institute Unadjusted Trial Balance as at 31 August 2021 RM RM 58,000 59,000 12,000 8,000 2,000 57,500 17,500 55,000 Cash Accounts receivable Prepaid insurance Equipment Accumulated depreciation for equipment Buildings Accumulated depreciation for buildings Land Unearned rent Bank loan Capital Fees earned Wages Utilities Repairs and maintenance Interest expense Total 16,000 50,000 115,600 97,400 32,000 8,000 5,000 4,000 298,500 298,500 Additional information: i. The Prepaid Insurance account consists of a payment for one year policy. An analysis of the insurance invoice indicates that one half of the policy has expired by the end of the 31 August year-end. ii. A cash payment for space sublet for 8 months was received on 1 March and was credited to Unearned Rent. iii. Accrued interest expense on the loan of RM1,000 has been incurred but not paid. Required: If these adjustments are not recorded, a. Show and explain the impact on net income with calculation without the adjustments and with the adjustments. (11 marks) b. Explain the accounting principles that are being violated if the adjustments are not made. (4 marks) Question 3 A company made the following merchandise purchases and sales during the month of May with the assumption that there was no beginning inventory: Date Activities Units Sold at Retail Units Acquired at Cost 300 units at RM15/unit 270 units at RM20/unit 500 units at RM55/unit 300 units at RM24/unit 1 May Purchased 3 May Purchased 8 May Sold 12 May Purchased 14 May Sold 23 May Purchases 25 May Purchases 31 May Sales 250 units at RM55/unit 250 units at RM30/unit 800 units at RM25/unit 900 units at RM55/unit 4 ...4/- Required: a. Compute the value of the inventory as at 31 May 2021 by using the first-in, first out (FIFO) method. (13 marks) b. State the value of purchases, cost of goods sold and sales. (2 marks) Question 4 The following information is available for the Avira Language Center for the month of September 2021. i. On 30 September, after all transactions have been recorded, the balance in the company's Bank account has a balance of RM27,202. ii. The company's bank statement shows a balance on 30 September of RM29,279. iii. Outstanding cheques at 30 September include cheque number 3030 in the amount of RM1,525 and cheque number 3556 in the amount of RM1,459. iv. A credit memo included with the bank statement indicates that the bank collected RM780 on a noninterest-bearing note receivable for Avira. The bank deducted a RM10 collection fee, and credited the remainder of RM770 to Avira's account. V. A debit memo included with the bank statement shows a RM67 NSF check from a customer, Mr Brown. vi. A deposit placed in the bank's night depository on 30 September totaled RM1,675, and did not appear on the bank statement. vii. Examination of the cheques on the bank statement with the entries in the accounting records reveals that cheque number 3445 for the payment of an account payable was correctly written for RM2,450, but was recorded in the accounting records as RM2,540. viii. Included with the bank statement was a debit memorandum in the amount of RM25 for bank service charges. It has not been recorded on the company's books. Required: a. Prepare the September bank reconciliation for the Avira. (10 marks) b. Prepare the general journal entries to bring the company's book balance of bank into conformity with the reconciled balance as of September 30 2021. (5 marks) Question 5 The following is the trial balance for Tatt Trading as at 31 October 2021: CR RM DR RM 6,453 18,910 22,520 40,360 70,000 45,000 27,000 70,000 102,360 165,486 Bank Trade receivables Trade payables Inventory at 31 October 2020 Buildings at cost Equipment at cost Profits b/d Capital - Purchases Sales Carriage inwards Carriage outwards Salaries Rates and occupancy expenses Repair and maintenance Sundry expenses Provision for doubtful debts Accumulated depreciation at 31 October 2020: Buildings Equipment Drawings 2,070 1,890 18,310 4,735 3,522 1,896 500 22,000 16,000 8,000 323,506 323,506 Additional information: i. ii. iii. iv. V. Inventory at 31 October 2021 amounted to RM55,000. Repairs and maintenance owing RM222, sundry expenses owing RM196. Salary accrued amount to RM1,310. RM900 is provided for doubtful debts. Depreciation on cost: Buildings 2 per cent; Equipment 10 per cent. Required: Prepare the Statement of Comprehensive Income for the year and the Statement of Financial Position for Tatt Trading as at 31 October 2021. (Total: 40 marks)