QUESTION 3 The unadjusted and adjusted trial balance of the Budi Service Centre (PSB) as at 31 July 2020 is as follows: Balance Servicing Center On 31 July 2020 Not yet erlaras Terl Ras Debit Credit Debit Credit RM - (RM) (RAD (RM) Cash 11,300 11,300 Account Not yet Receive 16,340 17,140 Supply 1,045 645 Ads Prepaid 1,100 450 Building 26,700 26.700 Depreciation Accumulated - Building 1,300 6,300 Account Not yet Pay 3,320 3,500 Results Service Not yet Earned 4,410 3,010 Capital Budi 17,905 17.905 Results Service 72,400 74,600 Expenses Salary 34,500 34,500 Expenses Utility 5.450 5,630 Expenses Ads 2,900 3,550 Expenses Supply 400 Expenses Depreciation 5,000 99,335 99,335 105,315 105,315 Required: 1. 2. 3. 4. 5. Describe SIX (6) reasons for changes in account balances from trial balance unadjusted balances to adjusted balances. Prepare journal entries to record the changes identified in a). Prepare PSB Income Statement for the year ended 31 July 2020. Prepare PSB Einancial Position Statement as at 31 July 2020. If an adjustment is not made, explain the effect on the income statement and the financial position statement using ONE (1) example of the above balance sheet. BAHAGIAN B 1. Accounts should be constantly adjusted at the end of the accounting period due to 1. insufficient number of accounts to record all transactions. 2. there are many transactions that affect two or more accounting periods. 3. there were many errors in recording the corrected transactions. 4. provides an averne for management to beautify their accounts. 2. A legal firm has received RM3,000 cash for future legal advice services. The amount has been credited to the account as a result of the uneasy fees. If the service has been performed properly at the end of the accounting period but no record of adjustments has been made then 1. overspending. clean income overstated 3. understated liability. 4. understated results. 2. 3. Tasik Madu Sdn Bhd purchased a costly rm7,000 supply and debited the amount to the supply account. At the end of the accounting period, physical calculations show the balance of supply is RM2,400. The correct journal entry is 1. Debit supply_expense RM2,400 supply credit RM2,400. 2. Debit supply RM4.600: supply expense credit RM4,600 3. Debit supply expense RM4.600; supply credit RM4,600. Debit supply RM2,400; Credit for supply expense RM2,400 4. 4. Daging Jaya Sdn Bhd purchased a computer for RM4,800 on 1 December. It is estimated that the year's depreciation is RM1,200. If the account is closed on every December 31 then the correct journal entry for depreciation is 1. Debit expenses depreciation of RM1,200, accumulated depreciation of RM1,200. 2. Debit depreciation expenses of RM100; accumulated depreciation of RM100. 3. Debit expenses depreciation rm3.600; accumulated depreciation of RM3,600. 4. Debit office equipment RM4,800; accumulated depreciation of RM4,800. 5. REM Real Estate received a cheque worth RM24.000 on 1 July as a 6-month rental down payment from the tenant. The amount has already been credited to the account as a result of the uneasy rental. The financial statements are prepared on July 31. Journal notes of adjustments to be made by REM Real Estate on 31 July are: a. Uneasy rental yield debit of RM4,000; rental yield credit of RM4.000. b. Debit of rental yield rm4,000; outstanding rental yield of RM4,000. c. Uneasy rental yield debit of RM24,000; rental yield credit of RM24,000. d Cash debit RM24,000; rental yield credit of RM24,000. 6. Family Fun Park Empire commenced its theme park operations on June 1, 2020. His account balance as at 30 June 2020 is as follows: Prepaid insurance RM 6,480 Equipment RM 36,000 Notes Not Yet Paid RM 30,000 Unearned income RM 4,000 Service revenue RM 1,800 Bank RM 10,500 Required: Specify the exact forecast journal for LIMA (5) of the following additional information: 1. Prepaid insurance involves a 3-year insurance policy starting June 1. a Dt Insurance Expenses 6,480 Cash Kt 6,480 b. Dt. Prepaid Insurance 180 Kt Insurance Expenses 180 C. Dt Insurance Expenses 180 Kt Prepaid Insurance d. Dt Insurance Expenses 540 Kt Prepaid Insurance 540 180 2. 150 1,800 1,800 Depreciation of equipment is RM150 per month. a Dt Depreciation expenses 150 Kt Accumulated depreciation equipment b. Dt Depreciation expenses Kt Accumulated depreciation equipment c. Dt Accumulated depreciation 1,800 equipment Kt Depreciation expenses Dt. Accumulated depreciation 150 equipment Kt Depreciation expenses 1,800 d 150 3. Unpaid Notes dated 1 June 2020. It is a 6-month note, 12%. a. Dt Interest expenses 300 Kt Interest payable 300 b. Dt Interest expenses 3,600 Kt Interest payable 3,600 c. Dt Interest expenses 30,000 Kt Interest payable 30,000 d. Dt Interest expenses 600 Kt Interest payable 600 4. A customer used the Family Fun Park Empire service in June worth RM3,000. However, there are no payments and entries made. 1. Dt Service revenue receivable 3,000 Kt Service revenue 3,000 2. Dt Service Revenue 3,000 Kt Service revenue receivable 3.000 C. Dt Bank 3.000 Kt Service revenue 3,000 d. Dt Service revenue 3,000 Kt Bank 3,000 5. Kt Ticket coupon books worth RM50 each were sold for 80 on June 1 in conjunction with the opening promotion. As of June 30, 60 coupon books had been used. 1. Dt Service revenue receivable 1,000 1,000 service revenues 2. Dt 1,000 uneasy service revenues 1,000 service revenues 3. Dt 3.000 uneasy service revenues Kt 3,000 service revenues 4. Dt 3,000 service revenues Kt 3.000 uneasy service revenues Kt