Share Insert Draw Design Layout References View Tell me Mailings Review Picture Format 11 8.62 cm Crop1705cm Corrections Color nove ground Artistic Transparency Effects Quick Styles Alt Text Position Wrap Bring Send Selection Align Text Forward Backward Pare As an accounts clerk of Dawson Trading, one of your monthly routine tasks is to prepare a bank reconciliation statement. For the month of December 2012, you have collected the following information: 1. The opening (1 December 2012) cash at bank ledger account balance is RM1,866 (Dr) and the bank statement as at 31 December 2012 showed a debit balance of RM1,255. Cash journals prepared for the month has the following totals: Cash receipt journal RM18,652 Cash payment joumal RM17,408 2. There have been errors detected by both parties, the accounts clerk and the banker. The cash receipt journal had overstated a receipt from a debtor by RM220 and the banker had wrongly included a cheque deposit amounting to RM540 in Dawson's bank account 1 Deposits in transit amounted to RM6,826 The following cheques drawn by Dawson Trading have not been presented for payments: Cheque No: RM 2158 611 2162 302 2164 128 2175 500 3 4 5. The proprietor has given standing instruction to the bank for monthly rent of RM750 and insurance premium of RM150. These transactions have been recorded in the bank Question 1 (con't) Part B Gadget Ltd. offers a 12-month warranty to its customers with the mobile gadgets that it sells. Warranty liabilities are estimated at 15% of the budgeted revenue for the next financial year. On July 1, 2020, the balance of the Warranty Provision account was $63,000 (Normal balance) During the year ended June 30, 2021, warranty expenses are $80,000. Warranty claims are in the form of spare parts. The budget revenue from the sale of mobile gadgets for the next financial year is $500,000. There have been no changes in suppliers, product quality or prices. Below is the claim history of Gadget Ltd for the past two years: I Warranty Claims Financial Year 2019 48,000 Financial Year 2020 64,000 Budgeted Revenue 300,000 400,000 Required: Construct the Warranty Provision' account for the financial year 2021. Do you think the warranty provisions made are adequate to cover warranty claims for years from 2019 to 2021? Give a reason for your answer. Show your working to support your reason. Share Insert Draw Design Layout References View Tell me Mailings Review Picture Format 11 8.62 cm Crop1705cm Corrections Color nove ground Artistic Transparency Effects Quick Styles Alt Text Position Wrap Bring Send Selection Align Text Forward Backward Pare As an accounts clerk of Dawson Trading, one of your monthly routine tasks is to prepare a bank reconciliation statement. For the month of December 2012, you have collected the following information: 1. The opening (1 December 2012) cash at bank ledger account balance is RM1,866 (Dr) and the bank statement as at 31 December 2012 showed a debit balance of RM1,255. Cash journals prepared for the month has the following totals: Cash receipt journal RM18,652 Cash payment joumal RM17,408 2. There have been errors detected by both parties, the accounts clerk and the banker. The cash receipt journal had overstated a receipt from a debtor by RM220 and the banker had wrongly included a cheque deposit amounting to RM540 in Dawson's bank account 1 Deposits in transit amounted to RM6,826 The following cheques drawn by Dawson Trading have not been presented for payments: Cheque No: RM 2158 611 2162 302 2164 128 2175 500 3 4 5. The proprietor has given standing instruction to the bank for monthly rent of RM750 and insurance premium of RM150. These transactions have been recorded in the bank Question 1 (con't) Part B Gadget Ltd. offers a 12-month warranty to its customers with the mobile gadgets that it sells. Warranty liabilities are estimated at 15% of the budgeted revenue for the next financial year. On July 1, 2020, the balance of the Warranty Provision account was $63,000 (Normal balance) During the year ended June 30, 2021, warranty expenses are $80,000. Warranty claims are in the form of spare parts. The budget revenue from the sale of mobile gadgets for the next financial year is $500,000. There have been no changes in suppliers, product quality or prices. Below is the claim history of Gadget Ltd for the past two years: I Warranty Claims Financial Year 2019 48,000 Financial Year 2020 64,000 Budgeted Revenue 300,000 400,000 Required: Construct the Warranty Provision' account for the financial year 2021. Do you think the warranty provisions made are adequate to cover warranty claims for years from 2019 to 2021? Give a reason for your answer. Show your working to support your reason