Nish Kumar Services Company started business on 1 January 2020 with a capital of RM120,000. The company manages condominiums for owners (Service Revenue) and rents out space in its building (Rental Revenue). The Trial Balance and the Adjusted Trial Balance at the end of the first year are as follows: Cash Debtors Prepaid Insurance Land Building Equipment Creditors Account Rental Results Salary Spending. Advertising Spend Utility Shopping Nish Kumar Service Company Worksheet Rental Income Not Received Unpaid Leases Capital, N.Kumar Ambilan, N.Kumar Service Results For the year ended 31 December 2020 Expected Balance RM RM 14,500 23,600 3,100 56,000 106,000 49,000 Interest Expenses Interest Unpaid Insurance Shopping Depreciation Expenses - Buildings Accumulated Depreciation - Buildings Depreciation Expenses - Equipment Accumulated Depreciation - Equipment 20,000 Amount 30,000 17,000 10,400 5,000 15,800 Amount 335,000 335,000 100,000 120,000 75,600 24,000 Adjusted Trial Balance RM RM 14,500 23,600 1,400 56,000 106,000 49,000 20,000 30,000 17,000 15,800 1,700 2,500 3,900 9,000 350,400 10,400 2,800 100,000 120,000 75,600 26,200 2,500 3,900 9,000 350,400 Be required: a) Complete the Worksheet above. b) Prepare a tiered Statement of Financial Position as at 31 December 2020 (Note: RM10,000 from Lease Payable is due next year). c) Prepare adjustment journal entries. d) Prepare closing notes on 31 December 2020. e) Prepare Trial Balance After Closing on 31 December 2020. SECTION B 1. Information to prepare the trial balance is taken from a. pay slip b. ledger account c. journal entries d. business documents 2. After the adjustment entries are journalized and posted to the ledger account, the balance in each account should be in line with the balance shown in: a. adjusted predictive balance b. trial balance after closing c. Journal d. adjustment columns in the worksheet 3. If the number of debit columns exceeds the number of credit columns in the financial statement column on the worksheet, this means: a. the company generates a net profit b. an error occurs because the debit amount is not equal to the credit amount c. the company suffered a loss d. adjustment notes need to be made 4. Income Summary Account is a. permanent account b. items in the Statement of Financial Position c. items in the Comprehensive Income Statement d. temporary account 5. A closing note is necessary for a. permanent accounts only b. temporary accounts only c. permanent and temporary accounts d. permanent accounts or real accounts only 6. Income Summary is done a. to terminate the company's business. b. so that all assets, liabilities and capital of the owner have a balance of zero when the next accounting period begins. c. so that the net profit (or loss) and withdrawals are transferred to the owner's capital account. d. so that a Comprehensive Income Statement can be prepared. 5 7. Closing Notes a. prepared prior to the Statement of Comprehensive Income b. reducing the number of permanent accounts c. causing the revenue and expenditure account to have a balance of zero d. summarize the activity in each account 8. Closing notes may be provided from information in the following sources EXCEPT: a. adjusted balance in the ledger account b. income statement in worksheet column c. statement of financial position d. income statement and owner's capital The following is information from the Archer Enterprise Company Income Statement for the month ended June 30, 2018: Results Shopping: Spend the salary Rent shopping Spend on advertising Shopping for supplies Insurance expenses Total spending Net profit a. debit summary income RM1,800 b. income summary credit of RM1,800. c. debit summary income RM7,000. d. income summary credit of RM7,000. RM 3,000 1,000 b. rental expense credit of RM1,000. c. income summary credit of RM5,200. d. salary expenditure debit of RM3,000 800 300 100 RM 7,000 9. With reference to the Income Statement of Archer Enterprise Company above, the entry to close the revenue account is included 5,200 1,800 10. Referring to the Income Statement of Archer Enterprise Company above, the entry to close the expense account is included a. debit summary income RM1,800.