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How to solve this question. QUESTION 3 (20 MARKS) Rabbani Enterprise is a service business. The trial balance as on 31 December, 2017 is as

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QUESTION 3 (20 MARKS) Rabbani Enterprise is a service business. The trial balance as on 31 December, 2017 is as follow: Debit Credit Accounts (RM) (RM) Cash 148,500 Account Receivable 168,550 Office supplies 4,500 Prepaid Insurance 18,000 Office Equipment 75,000 Accumulated depreciation - Office equipment 30,000 Building 187,500 Accumulated depreciation - Building 97,500 Account Payable 285,000 Unearned Revenue 33,750 Capital 219,750 Drawings 48,750 Service revenue 230,000 Wages expenses 9,750 Utilities expenses 8,250 Rent expenses 8,950 Interest expenses 350 Total 900,100 900,100 The following adjustments are not taken into account in the accounting period ended 31 December 2017: a. Supplies on hand on December 31, RM3,375 b. Depreciation of office equipment is as rate of 10% per year based on the straight line method. Depreciation of building is a rate of 5% on book value. C. Paid supplier on account, RM3,750 d. Unearned revenue represented the receipt during November which is in deposit for sales to be provided in three months.d. Unearned revenue represented the receipt during November which is in deposit for sales to be provided in three months. e. Credit sales but unbilled on December 31 are RM37,500 f. Wages accrued on December 31 are RM9,375 9. Prepaid insurance represented for premium on policies for the next 6 months starting October 1, 2012 h. The owner withdraw RM7,500 in cash for personal use. i. Merchandise inventory as on 31 December is RM4,700 Required: i. Prepare the adjusting entries in general journal format. (8 marks) ii. Prepare comprehensive income statement and statement of financial position as on 31 December, 2017 (12 marks)

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