Question
Account Debit (RM) Credit (RM) Cash 5550 Account Receivable 28350 Insurance Prepaid 7200 Supply 1980 Land 112500 Building 212500 Depreciation (Building) 137550 Equipment 135300 Depreciation
| Account | Debit (RM) | Credit (RM) |
| Cash | 5550 |
|
| Account Receivable | 28350 |
|
| Insurance Prepaid | 7200 |
|
| Supply | 1980 |
|
| Land | 112500 |
|
| Building | 212500 |
|
| Depreciation (Building) |
| 137550 |
| Equipment | 135300 |
|
| Depreciation (Equipment) |
| 97950 |
| Account Payable |
| 12150 |
| Rental Receivable |
| 6750 |
| Modal |
| 201000 |
| Take | 15000 |
|
| Service fees |
| 294600 |
| Salary and wages spending | 143770 |
|
| Utilities spending | 42375 |
|
| Advertisement spending | 22150 |
|
| Repair spending | 17250 |
|
| Miscellaneous spending | 6075 |
|
| Total | 750,000 | 750,000 |
The following information is provided for year -end adjustments: 1. The insurance premium that expires on 31 December 2020 is RM 2700. 2. The supply on hand as at 31 December 2020 is RM 480. 3. Depreciation for 2020 for buildings and equipment of 5% and 10% of the cost respectively. 4. Unearned rental income as at 31 December 2020 is RM 3250. 5. Salary expenditure from unpaid wages in 2020 is RM 2800. 6. Revenue from services obtained but not yet billed in 2020 is RM 6200.
Be required: a. Prepare journal entries for each of the above adjustments. b. Prepare an adjusted trial balance as at 31 December 2020. c. Prepare income statement, owners equity and balance sheet as at 31 December 2020. d. Prepare a journal of closing notes and trial balance after closing.
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Contemporary Auditing
Authors: Knapp, Rittenberg
1st Edition
1133731244, 978-1133731245
