MR FATMI, a former manager has just resigned from his father's company, opened his own shop named FF COMPUTERS ENT, selling the range of computers. On 11 January 2021 he brought in his own car worth RM230,000 for the business use and cash of RM50,000. The following transactions were completed in the very first month of operation: January 1 Paid RM5,800 rental expenses for January and February 2021. Purchased exhibition racks and paid RM26,000 for the whole amount. 2 Purchased merchandise from ACER BHD for RM15,850, FOB shipping point, terms 3/15, n/30. 5 Paid freight on purchases from ACER BHD for RM530. 7 Purchased printers from MOSIBA SHOPPE for RM14,900. FOB destination, terms 2/10,n/com. 8 Cash sales RM3,800. The cost of the merchandise sold was RM1,330. 9 Returned defect printer to MOSIBA SHOPPE costing RM550. 10 Sold merchandise totalled RM13,880 to PILAH BLASTERS. Terms 2/10, n/30. The cost of the merchandise was RM8,080. 11 Paid ACER BHD the full amount for purchases made on 2 January. MR FATMI took few sets of ACER brand notebook costing RM2,310 as present for his son's friends. 15 Obtained a loan from DON BANK BERHAD for RM75,000 cash payable in 5 years. 17 Sold merchandise costing RM3,975 to JOLOBU ENTERPRISE for RM8,500. Terms 5/10, n/30. 20 Paid MOSIBA SHOPPEin full. Received payment from PILAH BLASTERS in full. 22 Sold merchandise to ELITE CLUB for RM3,200 and received cash. The cost of the merchandise was RMI, 120. 25 Purchased merchandise from ACER BHD for RM3,500, FOB shipping point, terms 3/10, n/30. Paid freight charges of RM100. 27 Paid RM320 to AMPANGAN CLUB for merchandise returned that costs RM112. 30 Paid utility bills totalled RM2,350 and RM8,600 for salary to employees. 31 Purchased a one-year insurance policy starting from February 2021 for RM3,600. At the end of the month, the following adjustments need to be made: (i) Rental expenses for the month; (ii) Vehicle is to be depreciated at the rate of 20% per annum; (iii) Furniture is to be depreciated at the rate of 10% per annum; and (iv) A total of RM2,400 salaries remained payable at the end of the month. YOU ARE REQUIRED TO: 25 Purchased merchandise from ACER BHD for RM3,500, FOB shipping point, terms 3/10, n/30. Paid freight charges of RM100. 27 Paid RM320 to AMPANGAN CLUB for merchandise returned that costs RM112. 30 Paid utility bills totalled RM2,350 and RM8,600 for salary to employees. 31 Purchased a one-year insurance policy starting from February 2021 for RM3,600 At the end of the month, the following adjustments need to be made: (i) Rental expenses for the month; (ii) Vehicle is to be depreciated at the rate of 20% per annum; (iii) Furniture is to be depreciated at the rate of 10% per annum; and (iv) A total of RM2,400 salaries remained payable at the end of the month. YOU ARE REQUIRED TO: a. Journalize all the transactions and the adjusting entries in the general journal. b. Post all entries from general journal to general ledger. c. Prepare the Adjusted Trial Balance for the month. d. Prepare the Statement of Profit or Loss and Other Comprehensive Income for the month. e. Prepare the Statement of Changes in Equity for the month. f. Prepare the Statement of Financial Position as at the end of the month. The chart of accounts for the shop includes the following: No, Account Description No Account Description 101 Cash 301 Capital 112 Accounts Receivable 310 Drawings 128 Merchandise Inventory 400 Sales Revenue 130 Prepaid Insurance 501 Sales Returns & Allowances 132 Prepaid Rent 505 Cost of Goods Sold 155 Furniture 507 Sales Discounts 711 Depreciation Expense - Furniture 156 Accumulated Depn- Furniture 157 Vehicle 712 Depreciation Expense - Vehicle 158 Accumulated Depn- Vehicle 722 Insurance Expense 201 Accounts Payable 725 Salaries Expense 727 Utilities Expense 212 Salaties Payable 290 Bank Loan 730 Rent Expensese Expenses END 1 MR FATMI, a former manager has just resigned from his father's company, opened his own shop named FF COMPUTERS ENT, selling the range of computers. On 11 January 2021 he brought in his own car worth RM230,000 for the business use and cash of RM50,000. The following transactions were completed in the very first month of operation: January 1 Paid RM5,800 rental expenses for January and February 2021. Purchased exhibition racks and paid RM26,000 for the whole amount. 2 Purchased merchandise from ACER BHD for RM15,850, FOB shipping point, terms 3/15, n/30. 5 Paid freight on purchases from ACER BHD for RM530. 7 Purchased printers from MOSIBA SHOPPE for RM14,900. FOB destination, terms 2/10,n/com. 8 Cash sales RM3,800. The cost of the merchandise sold was RM1,330. 9 Returned defect printer to MOSIBA SHOPPE costing RM550. 10 Sold merchandise totalled RM13,880 to PILAH BLASTERS. Terms 2/10, n/30. The cost of the merchandise was RM8,080. 11 Paid ACER BHD the full amount for purchases made on 2 January. MR FATMI took few sets of ACER brand notebook costing RM2,310 as present for his son's friends. 15 Obtained a loan from DON BANK BERHAD for RM75,000 cash payable in 5 years. 17 Sold merchandise costing RM3,975 to JOLOBU ENTERPRISE for RM8,500. Terms 5/10, n/30. 20 Paid MOSIBA SHOPPEin full. Received payment from PILAH BLASTERS in full. 22 Sold merchandise to ELITE CLUB for RM3,200 and received cash. The cost of the merchandise was RMI, 120. 25 Purchased merchandise from ACER BHD for RM3,500, FOB shipping point, terms 3/10, n/30. Paid freight charges of RM100. 27 Paid RM320 to AMPANGAN CLUB for merchandise returned that costs RM112. 30 Paid utility bills totalled RM2,350 and RM8,600 for salary to employees. 31 Purchased a one-year insurance policy starting from February 2021 for RM3,600. At the end of the month, the following adjustments need to be made: (i) Rental expenses for the month; (ii) Vehicle is to be depreciated at the rate of 20% per annum; (iii) Furniture is to be depreciated at the rate of 10% per annum; and (iv) A total of RM2,400 salaries remained payable at the end of the month. YOU ARE REQUIRED TO: 25 Purchased merchandise from ACER BHD for RM3,500, FOB shipping point, terms 3/10, n/30. Paid freight charges of RM100. 27 Paid RM320 to AMPANGAN CLUB for merchandise returned that costs RM112. 30 Paid utility bills totalled RM2,350 and RM8,600 for salary to employees. 31 Purchased a one-year insurance policy starting from February 2021 for RM3,600 At the end of the month, the following adjustments need to be made: (i) Rental expenses for the month; (ii) Vehicle is to be depreciated at the rate of 20% per annum; (iii) Furniture is to be depreciated at the rate of 10% per annum; and (iv) A total of RM2,400 salaries remained payable at the end of the month. YOU ARE REQUIRED TO: a. Journalize all the transactions and the adjusting entries in the general journal. b. Post all entries from general journal to general ledger. c. Prepare the Adjusted Trial Balance for the month. d. Prepare the Statement of Profit or Loss and Other Comprehensive Income for the month. e. Prepare the Statement of Changes in Equity for the month. f. Prepare the Statement of Financial Position as at the end of the month. The chart of accounts for the shop includes the following: No, Account Description No Account Description 101 Cash 301 Capital 112 Accounts Receivable 310 Drawings 128 Merchandise Inventory 400 Sales Revenue 130 Prepaid Insurance 501 Sales Returns & Allowances 132 Prepaid Rent 505 Cost of Goods Sold 155 Furniture 507 Sales Discounts 711 Depreciation Expense - Furniture 156 Accumulated Depn- Furniture 157 Vehicle 712 Depreciation Expense - Vehicle 158 Accumulated Depn- Vehicle 722 Insurance Expense 201 Accounts Payable 725 Salaries Expense 727 Utilities Expense 212 Salaties Payable 290 Bank Loan 730 Rent Expensese Expenses END 1