BAC1034 PRINCIPLES OF FINANCIAL ACCOUNTING 8 MARCH 2019 QUESTION 1 Part A Presented below is the Trial Balance items for Friso Berhad as at 31 December 2018. Cash Accounts Receivable Supplies Prepaid Insurance Land Equipment Dr (RM) 15,000 10,800 23,000 1,200 80,000 40,000 170,000 Accounts Payable Notes Payable Unearned Service Revenue Share Capital-Ordinary Rent Revenue Service Revenue Cr (RM) 22,000 25,000 8,000 60,000 20,000 35,000 170,000 Other data: 1. A count of supplies as at 31 December 2018 indicated that supplies of RM13,000 has been used. 2. Prepaid insurance is a 2-year policy starting 1 January 2018. 3. The notes payable amounted RM25,000 was issued on 1 January 2018 with 6% interest annually. 4. Depreciation on equipment is 5% using straight-line method. 5. Unearned service revenue of RM3,000 remained unearned. 6. The company declared a dividend of RM22,000 at the end of year. Required: (a) Prepare the Adjusted Trial Balance for Friso Berhad as at 31 December 2018. (7 Marks) (b) Adjusting entries are classified as either deferrals or accruals. Identify the TWO (2) deferrals and the TWO (2) accruals. (4 Marks)