Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

The unadjusted trial balance and the adjustment data for Robin Training Institute are given below along with adjusting entry information. Robin Training Institute Unadjusted

The unadjusted trial balance and the adjustment data for Robin Training Institute are given below along with adjusting entry information. Robin Training Institute Unadjusted Trial Balance as at 31 August 2021 Cash Accounts receivable Prepaid insurance Equipment Accumulated depreciation for equipment Buildings Accumulated depreciation for buildings Land Unearned rent Bank loan Capital Fees earned Wages Utilities Repairs and maintenance Interest expense Total RM 58,000 59,000 12.000 8,000 57.500 55,000 32,000 8,000 5.000 4,000 298.500 RM 2,000 17,500 16.000 50,000 115,600 97,400 298,500 Additional information: The Prepaid Insurance account consists of a payment for one year policy An analysis of the insurance Involce indicates that one half of the policy has expired by the end of the 31 August year-end. A cash payment for space sublet for 8 months was received on 1 March and was credited to Unearned Rent Accrued interest expense on the loan of RM1,000 has been incurred but not paid Required: If these adjustments are not recorded, a Show and explain the impact on net income with calculation without the adjustments and with the adjustments (11 marks) b. Explain the accounting principles that are being violated if the adjustments are not made. (4 marks)

Step by Step Solution

There are 3 Steps involved in it

Step: 1

a Impact on net income without adjustments Without the adjustments the net income would be overstated because certain expenses and revenues have not been recognized or properly allocated for the perio... blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Fundamental Accounting Principles

Authors: John Wild, Ken Shaw, Barbara Chiappett

23rd edition

1259536351, 978-1259536359

More Books

Students also viewed these Accounting questions

Question

Briefly discuss Aristotles approach to dreaming.

Answered: 1 week ago