BKAL1013 BUSINESS ACCOUNTING QUESTION 3 (50 MARKS: 120 MINUTES) Viviana Enterprise runs a beauty salon business and has been in business since January 2010 and closes its accounts at the end of each year. The unadjusted account balances for Viviana Enterprise as at 31 December 2019 are as follows: ACCOUNTS RM Cash 23,500 Accounts Receivable 11,500 Office Supplies 4,300 Prepaid Insurance 6,000 Salon Equipment (1/1/2010) 60,000 Accumulated Depreciation - Salon Equipment 18,000 Accounts Payable 5,530 Notes Payable 15,000 Unearned Fees 12,000 Capital, Viviana 37,970 Withdrawal, Viviana 6,700 Fees Earned 53,000 Salaries Expense 18,000 Salon Rental Expense 5,500 Utilities Expense 3,900 Miscellaneous Expense 2,100 Additional information: 1. 2. 3. Salon rental expense is RM500 per month and the rental expense for December was still unpaid. Viviana Enterprise received RM12,000 at the beginning of December 2019 for services rendered until the end of May 2020. The service charge rate is the same for each month. Prepaid insurance is a premium for a period of one year that was purchased on 1 April 2019. Fees earned but not yet billed as at 31 December 2019 was RM4,250. The balance of office supplies on hand as at 31 December 2019 was RM1,750. Depreciation of salon equipment is based on the straight line method. The lifespan of the equipment is 10 years with no salvage value. 4. 5. 6. REQUIRED: (a) Prepare the adjusting journal entries as at 31 December 2019. (16 Marks) (b) Prepare an adjusted trial balance for Viviana Enterprise as at 31 December 2019. (15 Marks) 2 BKAL1013 BUSINESS ACCOUNTING (c) Prepare Statement of Profit or Loss and Other Comprehensive Income for Viviana Enterprise for the month ended 31 December 2019. (6 Marks) (d) Prepare Statement of Changes in Equity for Viviana Enterprise for the month ended 31 December 2019. (3 Marks) (e) Prepare Statement of Financial Position for Viviana Enterprise as at 31 December 2019. (10 Marks)