Additional information:

i. Supplies as at 31st December 2019, RM34,500.

ii. Insurance expense at the rate of RM850 per month.

iii. Yearly depreciation on the non current assets as below:

furniture and fittings, RM5,175 motor vehicles, RM20,400.

iv. Interest expense RM5,295 still payable by end of the year

v. Estimated doubtful debt at the rate of 2% of accounts receivable

Question

a) Prepare Statement of Profit or Loss and Other Comprehensive Income for the year ended 31st December 2019.

b) Prepare Statement of Financial Position as at 31st December 2019

Metro Business Consultancies (MBC) was established in Kuala Lumpur on 1 January 2019. The business offers management, marketing and finance consultancies for small medium enterprises. Jesicca was appointed to handle about business accounting related matters. At the end of the first- year operations, MBC required to accurately report revenues earned and expenses incurred during that time period. MBC had the following unadjusted trial balance Metro Business Consultancies Unadjusted Trial Balance as at 31st December 2019 Account Name Debit Credit (RM) (RM) Cash 89,400 Accounts Receivable 105,832 Prepaid Insurance 13,600 Supplies 155,500 Furniture and fittings 103,500 (Purchased on 1/1/2019) Motor Vehicles (Purchased on 1/1/2019) 204,000 Purchase 113,000 Accounts Payable 95,209 Service Revenue 228,300 Capital 350,000 Long Term Loan 130,000 Unearned Service Revenue 10,000 Stationeries and Printing Expense 636 Salaries Expense 108,000 Utilities Expense 3,600 Advertising Expense 5,441 Rent Expense 24,000 813,509 813,509