Below is an unadjusted trial balance for Muezza Bhd at 30 June 2020. Muezza Bhd Unadjusted Trial
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 depreciation - equipment 2,000
Accounts payable 12,000
Notes payable 20,000
Unearned service revenue 30,000
Share capital 136,400
Retained earnings 5,000
Service revenue 125,000
Deferred tax liability 1,000
Salaries expense 22,000
Supplies expense 200
Advertising expense 2,200
Travelling expense 1,400
Maintenance service expense 5,200
Rent expense 20,000
Gain on revaluation of land 5,000
Utilities expense 12,000
BALANCE AMOUNT 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. 4
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.
(a) Prepare the necessary adjusting and correcting entries for Muezza Bhd.
(b) Prepare a Statement of Profit or Loss and Other Comprehensive Income for the year ended 30 June 2020 according to MFRS 101 Presentation of Financial Statement using one statement format.
(c) Prepare a Statement of Financial Position as at 30 June 2020 according to MFRS 101 Presentation of Financial Statement.
Expert Answer:
Fundamental Accounting Principles Volume 1
ISBN: 9781259259807
15th Canadian edition
Authors: Kermit Larson, Tilly Jensen, Heidi Dieckmann
