Balmond Bhd had the following adjusted trial balance as at 31 December 2021.

Required (i) Prepare journal entries to close the accounts. (6 marks) (ii) Prepare statement of retained earnings for the year ended 31 December 2021. (4 marks)

(c) In completing accounting cycle, each step must be complete and repeated through accounting period. One of the most important parts of accounting cycle is adjusting entries where the company analysis the accrual and prepayment of the business. Briefly discuss the differences between adjusting entries and correcting entries. Give example of each. (5 marks)

Credit (RM) Debit (RM) 22,800 12,600 40,000 8,800 8,000 20,000 18,000 Cash Accounts receivable Equipment Accounts payable Accumulated depreciation - equipment Share capital - ordinary Retained earnings Dividends Service revenue Unearned service revenue Rent revenue Salaries and wages expense Depreciation expense Supplies expense Utilities expense 6,600 62,600 6,500 8,800 44,000 4,000 1,500 1,200 132,700 132,700