Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

QUESTION 1 (50 MARKS: 3 HOURS) On 1 January 2020. Mr Jovid had invested RM150.000 in cash to start a business of Sport & recreation.

image text in transcribed

image text in transcribed

QUESTION 1 (50 MARKS: 3 HOURS) On 1 January 2020. Mr Jovid had invested RM150.000 in cash to start a business of Sport & recreation. The nature of the business is a wholesaler of sport and recreations equipment. The company begin the operation as a supplier in Klang Valley area. The business was registered as USAHAM Sport & Recreation Sdn Bhd Mr Jovid closes the company's accounts every month and applies perpetual inventory system in maintaining its inventories. The balances of the company's accounts as at 31 October 2020 are as follows: ACCOUNTS RM Cash 66.500 Accounts receivable 13,700 Merchandise inventory 24,000 Store supplies 3.200 Prepaid insurance 3.600 Store equipment 45.000 Vehicle 75.000 Notes payable 25.000 Accounts payable 58.000 The following transactions were completed in November 2000: Date Transactions Nov Purchased merchandise from Al BB Company, RM15.000. FOB shipping point, 1 terms 3/10,n30. The transportation cost of RM200 was paid to the transportation company 3 5 6 Sold merchandise to Moo Yee Enterprise. RM20,400, term 3/10, n 30, FOB Shipping point The cost of the merchandise. RM12.300. The transportation cost incurred was RM150 Received credit memo from Al BB Company for the merchandise returned RM500 Paid advertising expense, RM690. Paid Ali BB Company in full Sold merchandise to Union Club & Recreation on credit, listed price, RM35,000, trade discount 10%, credit term 2/10, Deom and FOB destination The cost of the merchandise, RM22.000 9 10 112 Purchased merchandise from Mee Loo, RM5,000, term 2710. n 30 and FOB destination. The transportation cost was RM200. Paid transportation cost for sales on 10 Nov, RM250. 17 Allowed credit to Union Club & Recreation for the merchandise returned, RM500. The merchandise cost was RM240 20 Received fill payment from Moo Yee Enterprise. 23 Sold merchandise for cash RM5,000 which had a cost of RM2300 28 Paid utility expense, RM500, salary expense, RM2,500 and miscellaneous Jercpenses. RM650. 29 Paid RM5.000 cash for notes payable due The following adjustments are to be made at the end of the month: 1. Store equipment and vehicle were bought on 1 February 2020 and no depreciations have been recorded. The annual depreciation rate for both assets is 10%. 2. A check on store supplies showed a balance of RM1,500 at the end of the month. 3. Utility expense accrued RM700. 4. On 1 Jamuary 2020, the company paid in advance, RM3.600 for insurance covering 3 years from January to December 2022. REQUIRED (a) Jourmalize all the transactions occurred in Nov 2020 by using net method (10 Marks) (b) Post all cash transactions to Cash Account at 30 Nov 2020 (4 Marks) Prepare the unadjusted trial balance as at 30 Nov 2020 (5 Marks) (d) Prepare the adjusting entries for the month of Nov 2020 (10 Marks) (e) Prepare the adjusted trial balance as at 30 Nov 2020. (7 Marks) 12

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image_2

Step: 3

blur-text-image_3

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Auditing And Assurance Services

Authors: Timothy Louwers, Penelope Bagley, Allen Blay, Jerry Strawser, Jay Thibodeau

8th International Edition

1260570517, 978-1260570519

More Books

Students also viewed these Accounting questions

Question

Identify the major phases of the training and HRD process

Answered: 1 week ago