Accounting 101

QUESTION 1 Knock Knock is a business selling furniture, owned by KK Enterprise. It had the following trial balance as at 31 December 2017: Credit RM Debit RM 13,700 19,800 46,000 47,000 99,500 28,000 42,750 Cash Account receivables Inventory (1 January 2017) Land Building Accumulated depreciation - building Equipment Accumulated depreciation - equipment Bank loan Account payables Capital Drawing Sales Purchases Carriage inwards Discount allowed Salary expenses Utility expenses Repair expenses Petrol expenses Insurance expenses 22,200 20,100 35,400 134,900 6,000 453,050 355,400 1,550 4,050 35,900 10,700 3,950 4,600 2,750 693,650 693,650 The following are the adjustments to be taken into consideration as at 31 December 2017: 1. Depreciation for the building and equipment are RM6,000 and RM4,500 respectively. 2. Opening inventory of RM45,450 as at 31 December 2017. 3. Interest on bank loan of RM200 which is due on 31 December is not yet paid. 4. Unpaid salary for the month of December is RM5,500. 5. Prepaid insurance is RM1,000. 6. Accrued utility expenses at 31 December is RM2,700. 7. Five per cent of the debt is confirmed to be bad debts. REQUIRED: i. Prepare the Statement of Profit or Loss and Other Comprehensive Income for the year ended 31 December 2017. (12 Marks) ii. Prepare Statement of Financial Position as at 31 December 2017. (13 Marks) (TOTAL: 25 MARKS)