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Yi Ching Company has the following selected accounts balances on 31 December 2020. Equipment Notes Payable Prepaid Insurance (RM) 6,650 (RM) Supplies 2,940 20,000
Yi Ching Company has the following selected accounts balances on 31 December 2020. Equipment Notes Payable Prepaid Insurance (RM) 6,650 (RM) Supplies 2,940 20,000 Unearned Service Revenue 30,000 2,220 All of the accounts have normal balances. The information below has been gathered as at 31 December 2020: 1. Depreciation was 10% on equipment for the year 2020. 2. Borrowed RM20,000 by signing a 10%, one-year note on 1 July 2020. 3. Paid RM2,220 for 12 months of insurance coverage on 1 October 2020. 4. Accrued RM11,000 of salaries and wages expense on 31 December 2020. 5. Performed services for a client in December 2020. The client was billed for RM3,200. 6. RM12,000 of unearned service revenue remained unearned for the year 2020. 7. A count of supplies on 31 December 2020, indicates that supplies of RM850 are still on hand. Required: Journalize the above adjusting entries required at 31 December 2020. Show all workings. (19 marks)
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