QUESTION 1 The followings trial balance is extracted from Kamal Rasyid Trading Enterprise as at 31 December 2020. 200,000 90,000 80,000 70,000 80.000 59,200 51,000 1.200 300,000 Land and building Motor vehicles Machinery 10% Bond payable Ordinary capital Accumulated depreciation Motor Accumulated depreciation Machinery Return outwards (purchase return) Purchase Sales Discount received Carriage inwards Beginning inventory Account receivable Account payable Salary expense Utility expense Cash Bond Interest expense Tax payable Total 527.000 3.500 4,700 20,000 56,000 26,400 30,400 5,100 35,000 7,000 9.900 828,200 828,200 Additional information: 1. Salaries paid in advance were RM 3,000 2. A Utility bill for RM500 has not been recorded and will not be paid until the next month 3. Depreciation is to be charged as follows: Motor vehicles: 10% on cost Machinery: 10% on net asset 4. Allowance for doubtful debt has to be provided at 5% of account receivable. 5. Accrued rental revenue of RM2,600 for December 2020 has not been recorded. 6. Closing inventories as at 31 December, 2021 was valued at RM 98,000 1 Required: (a) Prepare the adjusting entries for the additional information items. (6 marks) (b) Prepare the Income statement for the year ended 31 December, 2020 (15 marks) (c) Prepare the Statement of Financial position as at 31 December, 2020. (15 marks) Total: 36 marks