BKAR1013 FINANCIAL ACCOUNTING AND REPORTING I MINI CASE 2: CONCEPTUAL FRAMEWORK FOR FINANCIAL REPORTING Deadline: 30 October 2021 QUESTION 1 Below is an unadjusted trial balance for Muezza Bhd on 30 June 2020. Credit (RM) Muezza Bhd Unadjusted Trial Balance 30 June 2020 Debit (RM) Cash 125,400 Accounts receivable 25,000 Supplies 1,500 Prepaid insurance 4,500 Prepaid advertising 2,000 Land 105,000 Equipment 10,000 Accumulated depreciation - equipment Accounts payable Notes payable Unearned service revenue Share capital Retained earnings Service revenue Deferred tax liability Salaries expense 22,000 Supplies expense 200 Advertising expense 2,200 Travelling expense 1,400 Maintenance service expense 5,200 Rent expense 20,000 Gain on revaluation of land Utilities expense 12,000 336,400 2,000 12,000 20,000 30,000 136,400 5,000 125,000 1,000 5,000 336,400 Additional information: 1. An analysis of prepaid advertising shows that RM500 of the balance was consumed. 2. Supplies count on 30 June 2020 shows that RM1,200 is on hand. 3. Equipment has an estimated useful life of 10 years. 4. The records show that 50% of the work for a RM10,000 fee received in advance from a customer and recorded last month, is now completed. 5. Unpaid salary of RM5,800 for the month of June 2020 has not been recorded. 6. Unpaid utilities bill for June 2020 amounting to RM3,500 has not been recorded. 7. Accrued revenues of RM7,800 previously recorded to accounts receivable were collected. 1 BKAR1013 FINANCIAL ACCOUNTING AND REPORTING I 8. Rent expense of RM5,000 for July 2020 has been paid and recorded directly to rent expense in June 2020. 9. An interest of 6% note payable which was issued on 1 June 2020 has not been recorded. 20% of the notes payable is due in the next accounting period. 10. Income tax expense of RM3,000 is not yet paid. 11. Unrecorded and uncollected service revenue of RM9,000 has been earned. 12. A two-year, RM1,800 insurance policy was purchased on 1 June 2020 and recorded to prepaid insurance. REQUIRED: (Round up your answers to the nearest RM) (a) Prepare the necessary adjusting and correcting entries for Muezza Bhd. (b) Prepare a Statement of Profit or Loss and Other Comprehensive Income for the year ended 30 June 2020 according to MFRS 101 Presentation of Financial Statement using one statement format. (c) Prepare a Statement of Financial Position as at 30 June 2020 according to MFRS 101 Presentation of Financial Statement