Question 3:

AICIRA REPAIRS began operations on January 2019. At the end of the first year operations, the trial balance before adjustment shows the following:

AICIRA REPAIRS

Trial Balance as at 31 December 2019

Debit(RM) Credit(RM)

Cash 12,400

Bank 21,000

Accounts Receivable/ Debtors 3,200

Equipment 13,600

Vehicles 68,000

Building 102,000

Unearned revenue 5,500

Accounts Payable/ Creditors 55,700

Capital 37,000

Service Revenue 184,000

Supplies 35,000

Prepaid Insurance 6,000

Salaries Expense 21,000

282,200 282,200

Additional information:

1. Supplies balance as at 31^st December 2019, RM15,000.
2. Depreciation expenses for equipment, vehicles and building are as below:

Item	Depreciation
Equipment	1,360
Vehicles	6,800
Building	5,900

3. Salaries RM2,000 incurred, but still unrecorded and unpaid.
4. RM 3,000 from the unearned revenue has been earned.
5. RM200 from Accounts receivables confirmed cannot be collected.
6. RM2,000 of the prepaid insurance has expired.

Required:

Prepare:

a) Journal entries for the adjustments

b) an adjusted trial balance as at 31^st December 2019.

c) Statement of Profit or Loss for the month ended 31^st December 2019.

d) Statement of Owners Equity for the month ended 31^st December 2019.

e) Statement of Financial Position as at 31^st December 2019.