INSTRUCTIONS The Group Project offers the students the opportunity to work in teams and develop their knowledge, problem-solving skills, and critical thinking skills. In addition, students will have the chance to demonstrate their ability to prepare financial statements from a set of accounts, as shown in the trial balance. This project integrates and reinforces the concepts and procedures acquired in the relevant chapters. It also provides an overview of how the accounting record will be used to inform the users about the companys operation, performance, financial health, and cash management for a given accounting period. In a real-world situation, the adjusting entries will be commonly recorded when more information are available. However, this project will only be using the account balances from the trial balance for preparing the financial statements. Project Assessment: The project contributes 20% to the final grade, covering CLO 1, 2 and 3. Every member must take part in the discussions and completion of the project because the assessment will be done on individual basis. There are TWO (2) components of assessment consisting of a written answer (12% of the allocated mark) and rubrics based evaluation (8%). The written answer must be typed and submitted to UUMOL in pdf form. The deadline for the written answer is on 28/12/2021. Topic Online- Release Date/Time Online - Submission Date/Time Topic 3, 4, 5 2/12/2021(Thursday) 28/12/2021(Tuesday) Another component of the project will be assessed using interpersonal skills rubrics (8%). For this assessment, each group must submit 3 recorded videos of your meeting discussions (conducted while completing this project). The videos max length is about 30 minutes each. You may use any online platform such as google meet, webex or zoom. Please make sure your visual and audio, as well as your name and matric number in the videos are clear. The rubrics assessment will be based on the THREE (3) submitted videos. Please submit your videos to UUMOL and your group PADLET according to the following deadlines. Recorded Videos Online-Submission Date* 1 12/Dec/2021 (Sunday) 2 19/Dec/2021 (Sunday) 3 27/Dec/2021 (Monday) *Note: You can conduct online meeting/discussions on the project within the period given at your convenience, not necessarily on the video deadlines. Choose three of the recorded versions of your online meeting/discussions. You can have more than three meetings and its better to record every meeting. PROJECT CASE: PART A BACKGROUND Adam Kleen Enterprise (AKE) was initially set up as a convenient shop selling laundry related items by Adam Bollan. Despite having good results in the national-level examination and was even offered a place at a public university, he decided to pursue his ambition of becoming a successful entrepreneur. It all started with a humble beginning of selling detergents and fabric softeners. Soon, it was followed by personalized delivery to the doorsteps of his customers based on the latter schedules. This has certainly created a satisfied and growing number of newer customers and within a year, AKE has doubled the items in the shop to meet higher demands. AKE was a given breakthrough when it successfully won a tender to provide detergents and softeners for a laundry service contractor of a local government hospital. From here, there was a no turning back for Adam as he steered AKE into other related services such as selling specially packed detergents and fabric softeners, medical disposables, and other relevant rental services. When the Covid-19 pandemic hit the country, AKE was given another business opportunity of supplying personal protective equipment (PPE) to the hospital employees. Adam Kleen Enterprise Trial Balance 31 December 2020 Accounts Balances (RM) Debit Credit Cash 567,000 Account Receivable 180,875 Merchandise Inventory 404,813 Office Supplies 4,000 Sale Supplies 6,875 Pre-paid Insurance 72,975 Office Equipment 288,750 Accumulated Depreciation - Office Equipment 85,113 Delivery Van 378,875 Accumulated Depreciation - Delivery Van 151,125 Account Payable 329,275 Salaries Payable 10,625 Interest Payable 7,037 Unearned Revenue 19,350 Notes Payable 281,250 Capital, Mr. Adam 684,000 Withdrawal, Mr. Adam 27,500 Sales 929,887 Sales Returns and Allowances 3,525 Sales Discounts 7,928 Cost of Merchandise Sold 445,174 Advertising Expense 9,113 Local municipal license 2,750 Depreciation Expense - Office Equipment 3,000 Depreciation Expense - Delivery Van 3,875 Delivery Van Repairs & Maintenance 3,125 Sales Salaries Expense 41,563 Sales Supplies Expense 8,560 Insurance Expense 5,625 Office Salaries Expense 12,162 Office Supplies Expense 3,862 Rental Expense 10,625 Utilities Expense 3,237 Interest Expense 1,875 TOTAL RM2,497,662 RM2,497,662 Additional information: The following items are related to cash transactions throughout the year. Cash and cash equivalents as of 1 January 2020 was RM554,500. 1. Adam made a total cash withdrawal of RM27,500 in 2020. 2. AKE received cash RM10,000 from the disposal of an old van. 3. An additional cash of RM150,000 was brought in by Adam to increase his stake in AKE. 4. AKE bought a piece of land for future operational expansion. A total amount of RM180,000 was paid by cash. 5. Total cash receipts and disbursements from business operation were RM315,000 and RM255,000 respectively. REQUIREMENT: 1. You are required to prepare the Financial Statements for AKE based on the balances as shown in the trial balance as of 31 December 2020. (15 Marks) PART B: Additional information was available after the Financial Statements in Part A were completed. Critically analyze, the effect of each of the following items separately on the affected accounts, net income/loss, and accounting equation of AKE: (a) Depreciation to both office equipment and delivery van for a total of RM35,000. (b) Unpaid salaries of RM20,000. (c) Available balance of office supplies in hand was RM300. (d) A total of RM7,800 of the unearned revenue was realized. (e) A sum of RM40,500 insurance was not recorded. (f) The billing department failed to send invoices to clients for a total sum of RM24,400. (g) A new rental expense for equipment machines was journalized as a debit to office equipment for RM15,800 and a credit to Account Payable for RM15,800. (h) Suppliers invoices amounting to RM135,000 were journalized as a debit to Merchandise Inventory for RM135,000 and a credit to Account Payable for RM153,000. (8 Marks)