Question 3:

The following accounts balances were extracted from the books of Flower Enterprise for the year ended 31 December 2019.

Flower Enterprise

Trial Balance as at 31 December 2019

Accounts	Debit (RM)	Credit (RM)
Cash	277,500
Accounts Receivables	277,500
Office Supplies	4,500
Prepaid Insurance	18,000
Office Equipment	75,000
Accumulated Depreciation Office Equipment		30,000
Building	187,500
Accumulated Depreciation Building		97,500
Accounts Payable		285,000
Unearned revenue		33,750
Capital		219,750
Drawings	48,750
Service Revenue		232,500
Wages Expense	9,750
Total	898,500	898,500

The following adjustment are not taken into account in the accounting period ended 31 December 2019.

1. Received cash from clients on accounts RM2,000
2. Paid telephone and electricity bill for December 31, RM600
3. Paid manager salary by cash, RM5,000
4. Supplies on hand December 31, RM3,375
5. Depreciation of office equipment is at rate of 10% per year based on the Straight Line Method. Depreciation of building is rate of 5% based on Declining Balance Method.
6. Paid supplier on account RM3,750
7. Unearned revenue represented the receipt during November which is in advance for services to be provided in three months
8. Fees earned but unbilled on December 31 are RM37,500
9. Unpaid wages accrued on December 31 are RM9,375
10. Prepaid insurance represented for premiums on policies for the next 6 months starting October 1, 2019.
11. The owner withdrew RM7,500 in cash for personal use.

You are required to:

1. prepare a six (6) column worksheets to do the adjusting entries.
2. prepare a Statement of Profit or Loss and Other Comprehensive Income.
3. prepare a Statement of Financial Position.