Financial Accounting & Reporting Past Paper PDF - BKARK1013

BKARK1013 FINANCIAL ACCOUNTING & REPORTING I (A241) EXERCISE IN CLASS TOPIC 2-RECORDING PROCESS (ADJUSTING ENTRIES) Question Below is an unadjusted trial balance for Muezza Bhd at 30 June 2020. +-----------------------+-----------------------+-----------------------+ | Muezza Bhd |...

BKARK1013 FINANCIAL ACCOUNTING & REPORTING I (A241) EXERCISE IN CLASS TOPIC 2-RECORDING PROCESS (ADJUSTING ENTRIES) Question Below is an unadjusted trial balance for Muezza Bhd at 30 June 2020. +-----------------------+-----------------------+-----------------------+ | Muezza Bhd | | | | | | | | Unadjusted Trial | | | | Balance | | | | | | | | 30 June 2020 | | | +=======================+=======================+=======================+ | | **Debit (RM)** | **Credit (RM)** | +-----------------------+-----------------------+-----------------------+ | Cash | 125,400 | | +-----------------------+-----------------------+-----------------------+ | Accounts receivable | 25,000 | | +-----------------------+-----------------------+-----------------------+ | Supplies | 1,500 | | +-----------------------+-----------------------+-----------------------+ | Prepaid insurance | 4,500 | | +-----------------------+-----------------------+-----------------------+ | Prepaid advertising | 2,000 | | +-----------------------+-----------------------+-----------------------+ | Land | 105,000 | | +-----------------------+-----------------------+-----------------------+ | Equipment | 10,000 | | +-----------------------+-----------------------+-----------------------+ | Accumulated | | 2,000 | | depreciation - | | | | equipment | | | +-----------------------+-----------------------+-----------------------+ | Accounts payable | | 12,000 | +-----------------------+-----------------------+-----------------------+ | Notes payable | | 20,000 | +-----------------------+-----------------------+-----------------------+ | Unearned service | | 30,000 | | revenue | | | +-----------------------+-----------------------+-----------------------+ | Share capital | | 136,400 | +-----------------------+-----------------------+-----------------------+ | Retained earnings | | 5,000 | +-----------------------+-----------------------+-----------------------+ | Service revenue | | 125,000 | +-----------------------+-----------------------+-----------------------+ | Deferred tax | | 1,000 | | liability | | | +-----------------------+-----------------------+-----------------------+ | Salaries expense | 22,000 | | +-----------------------+-----------------------+-----------------------+ | Supplies expense | 200 | | +-----------------------+-----------------------+-----------------------+ | Advertising expense | 2,200 | | +-----------------------+-----------------------+-----------------------+ | Travelling expense | 1,400 | | +-----------------------+-----------------------+-----------------------+ | Maintenance service | 5,200 | | | expense | | | +-----------------------+-----------------------+-----------------------+ | Rent expense | 20,000 | | +-----------------------+-----------------------+-----------------------+ | Gain on revaluation | | 5,000 | | of land | | | +-----------------------+-----------------------+-----------------------+ | Utilities expense | 12,000 | | +-----------------------+-----------------------+-----------------------+ | | **336,400** | **336,400** | +-----------------------+-----------------------+-----------------------+ **Additional information:** 1. An analysis of prepaid advertising shows that RM500 of the balance was consumed. 2. Supplies count on 30 June 2020 shows that RM1,200 is on hand. 3. Equipment has an estimated useful life of 10 years. 4. The records show that 50% of the work for a RM10,000 fee received in advance from a customer and recorded last month, is now completed. 5. Unpaid salary of RM5,800 for the month of June 2020 has not been recorded. 6. Unpaid utilities bill for June 2020 amounting RM3,500 has not been recorded. 7. Accrued revenues of RM7,800 previously recorded to accounts receivable were collected. 8. Rent expense of RM5,000 for July 2020 has been paid and recorded directly to rent expense in June 2020. 9. An interest of 6% note payable which was issued on 1 June 2020 has not been recorded. 20% of the notes payable is due in next accounting period. 10. Income tax expense of RM3,000 is not yet paid. 11. Unrecorded and uncollected service revenue of RM9,000 has been earned. 12. A two year, RM1,800 insurance policy was purchased on 1 June 2020 and recorded to prepaid insurance. **REQUIRED:** **(Round up your answers to the nearest RM)** a. Prepare the necessary adjusting and correcting entries for Muezza Bhd.