ASSIGNMENT 2 : (CLO2)

Below are unadjusted accounts balances for Warisan Trading as at 31 December 2022:

Accounts	RM
Cash	62,400
Account receivables	196,350
Office supplies	16,200
Prepaid utilities	32,580
Prepaid insurance	25,200
Office equipment	44,040
Accumulated depreciation office equipment	13,200
Unearned revenue	89,550
Capital	233,400
Service revenue	122,040
Salaries expense	54,000
Miscellaneous expense	27,420

The following items were found omitted at the end of the accounting period:

1. Office supplies on hand at 31 December 2022 amounted to RM7,050.
2. Prepaid insurance represented premiums paid on 1 April 2022 for a period of one year.
3. Depreciation of office equipment based on the straight-line method. The office equipment has 8 year estimated useful life with no salvage value.
4. Salaries expense for the month of December is RM4,500 and only be paid early 2023.
5. Unearned revenue on 31 December 2022 is RM63,750.

Required:

1. Prepare the adjusting entries on 31 December 2022.

(10)

b) Prepare the income statement, statement of equity and balance sheet for Warisan Trading.

(20)