Answered step by step
Verified Expert Solution
Question
1 Approved Answer
Adam Harris started a new business called Jom Cetak Sdn. Bhd, which provides printing services, on 1 April 2021. The following is a list of
Adam Harris started a new business called Jom Cetak Sdn. Bhd, which provides printing services, on 1 April 2021. The following is a list of the business's transactions for April 2021:
- Adam Harris made an RM200,000 cash investment in the company.
- Jom Cetak paid RM450,000 for a piece of land and a building. The company made a cash payment of RM165,000 and signed a note payable for the remainder.
- Jom Cetak purchased office equipment from Wow Interiors Sdn. Bhd. for RM30,000. The company made a cash payment of RM17,000 and agreed to pay the balance within 60 days.
- Jom Cetak purchased a motorcycle on credit for RM3,400 from Motorex Sdn. Bhd. The motorcycle is to be used for customer deliveries. The company agreed to pay Motorex Sdn. Bhd. within ten days.
- Jom Cetak completed payment on the account payable to Motorex Sdn. Bhd.
- Jom Cetak obtained an RM30,000 loan from Bank Kaya and signed a six-month note payable.
Based on the above information, you are required to:
- Show the effects of all the above transactions in the accounting equation
(8)
- Prepare the journal entries to record all the transactions
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started