Question 2

The accounts balances for Klinik Permata as at 31 December 2021 are as follows:

Accounts	Debit	Credit
	RM	RM
Cash	11,400
Accounts receivable	3,500
Prepaid insurance	3,150
Clinic supplies	1,250
Clinic equipment	10,650
Accumulated depreciation Clinic equipment		4,500
Clinic premise	144,750
Accumulated depreciation Clinic premise		14,375
Land	138,500
Wages payable		2,625
Interest payable		2,750
Notes payable		127,000
Capital		129,650
Service revenue		73,000
Wages expense	9,000
Utilities expense	2,750
Insurance expense	2,550
Maintenance expense	5,125
Interest expense	12,750
Clinic supplies expense	3,250
Depreciation expense Clinic equipment	1,500
Depreciation expense Clinic premise	3,775
Total	353,900	353,900

Required:

1. Prepare the income statement for the year ended 31 December 2021.

(6)

b) Prepare the balance sheet as at 31 December 2021.

(9.5)