QUESTION 1

Mr. Yusuff has a trading company called Yusuff LabEnterprise. His company supplies laboratory equipment. As of June 30, 2020, his company hasalso operated for one and a half years. His company made adjustments toaccount on a monthly basis and close the account at the end of each year. Account balances onJune 30, 2020 is as follows:

Account	RM
Cash	43,400
Accounts Receivable	17,800
Merchandise Inventory	50,150
Supply	4,500
Previous Rent	21,000
Office Equipment	110,000
Depreciation Provision - Office Equipment	16,500
Notes Outstanding	50,000
Accounts Payable	24,000
Unpaid Salary	13,900
Yusuff, Capital	109,000
Joseph, Take	11,000
Sales	698,800
Returns and Sales Allowances	2,000
Salary Spend	135,000
Cost of Goods Sold	464,250
Utility Spend	10,000
Rental Spend	11,100
Shipping Expenses	25,000
Depreciation Expenses - Office Equipment	5,500
Supply Spend	1,500

Yusuff Lab Enterprise has conducted the following transactions throughout July 2020. Yusuff Lab Enterprise uses a continuous inventory system

July 3rd	Selling merchandise on credit to Endure Enterprise as much as RM30,000, terms 2/15, n/30, FOB destination. The cost of the merchandise this sale is RM27,200.
July 7th	Purchased merchandise on credit from Lisa Lab Supply for RM29,000, terms 2/15, n/30, FOB point of delivery. Pay the cost delivery of RM500.
July 15th	Selling merchandise in cash amounting to RM8,800. Cost of merchandise this sale is RM8,000.
July 16th	Received damaged merchandise worth RM1,200 from Endure Enterprise for merchandise sold on July 3rd. Cost of merchandise this damaged is RM1,050
July 23rd	Paid Lisa Lab Supply on items purchased on July 7th.

Additional information:

1. Depreciation is 10% per annum on the cost of office equipment.

2. The physical calculation on the supply shows a supply balance of RM2,000 at

July 31, 2020.

3. Salary expenses amounting to RM13,900 have not been paid as at 31 July 2020.

4. The rent for July is RM7,000.

BE REQUIRED:

(a) (i) Prepare journal entries to record transactions in July 2020.

(ii) Prepare adjustment entries as at 31 July 2020.

(b) Prepare Income Statement for the month ended 31 July 2020 and Sheet

Balance as at 31 July 2020 for Yusuff Lab Enterprise.

(c) Distinguish between delivery point FOB and destination FOB in terms of transfer

ownership and responsibility to pay freight costs.