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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
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:
- Depreciation to both office equipment and delivery van for a total of RM35,000.
- Unpaid salaries of RM20,000.
- Available balance of office supplies in hand was RM300.
- A total of RM7,800 of the unearned revenue was realized.
- A sum of RM40,500 insurance was not recorded.
- The billing department failed to send invoices to clients for a total sum of RM24,400.
- 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.
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
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