Part A Listed below are the transactions for Erina Berhad during the month of July 2020:

Required (a) Prepare journal entries for the transactions above. (9 marks) (b) Prepare the trial balance as at 31 July 2020. (7 marks)

Part B Inventory is accounted for at cost. Cost includes all expenditures necessary to acquire goods and place them in a condition ready for sale Required: Explain the inventory costing methods and its effects on financial statements and tax computation. (9 marks)

Jul 1 Jul 3 Jul 5 Jul 9 Elina Berhad issued RM100,000 ordinary share capital by cash to public. Purchased office equipment costing RM50,000 by signing a 6-month, 12% of note payable. Received a RM12,000 cash advance from Jessy, a client for services that are expected to be completed by December 31, 2020. Paid RM6,000 for a one-year insurance policy that will expire next year on June 30. Purchased an estimated 3-month office supplies on account from supplier for RM2,500. Declared and paid RM5,000 cash dividend to shareholders. Paid salaries to employees of RM4,000 by cash. Received RM10,000 in cash from Mimi, a client for services performed during the month. Paid office rent during the month of RM2,000 by cash. Jul 13 Jul 20 Jul 24 Jul 25 Jul 30