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Question 1:- Please answer all the TWO sections below from (A) to (B).

Section (A):- Muhammad, Hafiz, and Fatima started their own business, Lighthouse for Safety and Security Services (LSSS) Inc. On January 1^st, 2020, the following normal balances took place at the trial balance of LSSS.

-Accounts payable RM1,950

-Accounts receivable RM13,500

-Cash RM74,210

-Common stock RM50,000

-Land RM4000

-Merchandise inventory (24 @ RM265; 1 @ RM260) = 6,620

-Prepaid rent RM3,200

-Retained earnings RM47,800

-Salaries payable RM1,000

-Supplies RM200

-Unearned revenue RM980

The following transactions took place during 2020 for LSSS:

1. LSSS paid the salaries payable from 2019.

2. On May 1, 2020, LSSS established a RM100 petty cash fund to handle small expenditures.

3. LSSS paid RM4,800 on May 1, 2020, for one year's lease on the company van in advance.

4. LSSS paid RM7,200 on May 2, 2020 for one year's office rent in advance.

5. LSSS purchased RM400 of supplies on account.

6. LSSS purchased 100 alarm systems for RM28,000 cash during the year.

7. Sold 102 alarm systems for RM57,120. All sales were on account.

(Compute cost of goods sold using the FIFO cost flow method*)

8. LSSS paid RM2,100 on accounts payable during the year.

9. On August 1, LSSS replenished the petty cash fund. At this time, the petty cash fund had only RM7 of the amount left. It contained the following receipts: office supplies expense RM23, cutting grass RM55, and miscellaneous RM15.

10. Billed RM52,000 of monitoring services for the year.

11. Paid installers and other employees a total of RM25,000 cash for salaries.

12. Collected RM89,300 of accounts receivable during the year.

13. Paid RM3,600 of advertising expense during the year.

14. Paid RM1,100 of utilities expense for the year.

15. LSSS paid other expenses with RM1,400 for Zakat and taxes.

15. Paid a dividend of RM10,000 to the shareholders.

16. The unearned revenue was not earned during the year.

Required:

1.Prepare balance sheet for LSSS Inc. for the period ending 31^st Dec 2019.

2.Prepare the journal entry for transactions of LSSS Inc. during 2020.

3.Prepare the income statement for LSSS Inc. for the period ending 31^st Dec 2020.

4.Prepare statement of changes in equity for LSSS Inc. for the period ending 31^st Dec 2020.

5.Calculate the closing balance of merchandise inventory to be recorded in balance sheet.

6.Prepare balance sheet for LSSS Inc. for the period ending 31^st Dec 2020.

Section (B):- Based on the following information, prepare the statement of sources and uses of funds in the zakat and charity funds for the year 2020. Note that the undistributed Zakat and charity on 1^st January is RM910,000.

Paid RM70,000 as Zakat for the poor and the needy, Zakat due from the bank RM4,400,000; wayfarer received RM110,000; new converts to Islam received RM245,000; Zakat collection and distribution to staff RM155,000; Donations RM3,700,000; RM330,000 for the heavily indebted and freedom of slaves; Zakat due from accountholders RM990,000.

Additional notes:-

FIFO stands for "First-In, First-Out". It is a method used for cost flow assumption purposes in the cost of goods sold calculation. The FIFO method assumes that the oldest products in a company's inventory have been sold first. The costs paid for those oldest products are the ones used in the calculation