QUESTION 1 (50 MARKS)

For the past two years, Adam and his family have operated a part-time business from their home. The business, received a lot of attentions from the public, quickly building its reputation as an environmentally-conscious delivery service provider. The business has grown enormously and Adam decided to expand his family business, thinking about possibilities of running the business on a full-time basis.

On 1st Dec 2019, Adam decided to rent a shop and to operate the business known as Adam Delivery and Transportation Services. The following is the Trial Balance of the business as at 1st Dec, 2019:

Adam Delivery and Transportation Services

Trial Balance as at 1st Dec 2019

Accounts	Debit (RM)	Credit (RM)
Capital		45,000.00
Other payable		1,800.00
Drawings	1,500.00
Office equipment	3,500.00
Motor vehicle	60,000.00
Cash	3,700.00
Bank Maybank	7,220.00
Accounts receivables	2,980.00
Service revenues		37,600.00
Administration expenses	750.00
Maintenance of vehicles	550.00
Petrol	1,050.00
Salaries and wages	2,850.00
Water and Electricity	300.00
	84,400.00	84,400.00

The following transactions occurred during the month of Dec:

Dec 1	Paid a shop rent for RM2,500.00 by cheque.
6	Received cash from clients for delivery services provided RM750.00.
7	Purchased additional office furniture on account from Naveen RM3,500.00. The business paid RM1,500.00 as a down payment by issuing a cheque and the balance will be paid after 60 days.
8	Received cash from clients for services provided RM1,450.00.
11	Paid cash for newspaper advertisement RM190.00.
12	Paid Naveen for debt incurred on Dec 7 by issuing a cheque.
15	Recorded services provided on account RM8,500.00 for William. Term: Payment made within 14 days entitled 5% discount.
15	Paid part-time receptionist for two weeks wages RM900.00 by cash.
15	Recorded cash received from Ali for service provided RM650.00.
20	Recorded services provided on account RM5,500.00 for Hassan. Term: Payment made within 14 days entitled 5% discount.
22	Received cash from clients for delivery services RM3,850.00.
25	Received cash from William for services rendered on Dec 15.
27	Paid utility bills RM550.00 cash.
29	Received cash from Hassan for services provided on Dec 20.
30	Paid part-time receptionist for two weeks wages RM900.00 cash.
30	Deposited money into a business bank account RM5,000.00.

Required:

1. Journalize the entries in the appropriate books of account.
2. Post the journal entries to the T-accounts and calculate the account balances.
3. Prepare a trial balance.
4. Prepare a Profit and Loss Statement for the month.
5. Prepare a Statement of Financial Position for the month.