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The trial balance of HT Pte Ltd (HT) as at 31 December 20X1 is as follows: Trial Balance Debit Credit Account Title S$ S$ Cash

The trial balance of HT Pte Ltd (HT) as at 31 December 20X1 is as follows:

Trial Balance

Debit

Credit

Account Title

S$

S$

Cash

82,700

Accounts receivable

53,200

Inventory

34,250

Purchase

54,000

Prepaid maintenance

2,400

Building

1,200,000

PPE

300,000

Accumulated depreciation - PPE

90,000

Short term notes payable

20,000

Interest payable

600

Unearned revenue

20,800

Share capital

1,000,000

Retained earnings

231,000

Revenue

563,800

Salaries expense

110,000

Supplies expense

5,700

Depreciation expense

30,000

Transport expense

44,000

Utilities expense

4,030

Telephone expense

5,320

Interest expense

600

1,926,200

1,926,200

Other information at 31 December 20X1 included the following:

(i) In December 20X1, HT performed a service for a customer amounting to $5,690, but the transaction was not yet recorded.

(ii) The prepaid maintenance of $2,400 was paid in cash on 1 July 20X1 to cover the maintenance of the office for 12 months with effect from 1 July 20X1.

(iii) A customer walked into the store during December 20X1 and paid cash of $4,000 for a job to be performed in the next month. The account clerk recorded the transaction as Debit Cash and Credit Revenue.

(iv) During December 20X1, the company came to know that one of its customers was bankrupt and the amount of $2,000 owed to the company would not be collected. This fact has not been accounted for. The company adopted the direct write-off method.

(v) The account clerk had yet to accrue for current income tax liability amounting to $7,600.

(vi) HT adopted a periodic inventory system. A stock count was done and the inventory at year end was $33,000.

Required:

(a) For each of the points (i) to (vi) above, apply the accrual accounting concepts by passing the necessary adjusting or additional journal entries (journal narrative not required) for the year ended 31 December 20X1.

(b) Prepare the Statement of Financial Position for HT Pte Ltd as at 31 December 20X1, incorporating all the necessary adjustments as given in the additional information.

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