Famous Bookshop sells books to customers. The business owned by Mr. Previn. The following shows the...

 

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Famous Bookshop sells books to customers. The business owned by Mr. Previn. The following shows the list of transactions occurred in the month of April 2019. 1. 2. 3. 4. 5. 6. 7. 8. 9. 10. 11. Purchased 200 books from Wiluy on credit, each book cost RM10.00. Purchased 10 new book shelves with a total cost RM2,000 from Deco Enterprise on credit. Sold 50 books with a total RM1,000 to Clever School on credit. The business bought a new computer RM2,000 from Computer World Sdn Bhd. Mr Previn paid RM400 deposit by cash and the rest would be on credit. Sold books to customers in cash RM5,000. Settled the amount owing to Wiluy and receiving RM200 discount. Mr Previn used cash on hand from the business to pay off his personal utility bill that cost RM500. Received RM50 interest from the term deposit, transferred into business bank account. Transferred RM2,000 cash into business bank account. Received a cheque from Clever School for RM1,000 as full settlement. Paid monthly salary to Fattiha by cash RM1,000. Required: a) Prepare journal entries to record the above transactions. b) Prepare Bank account at April 2019. Part B On 1st August 2018, Mickey Company borrows RM100,000 from HRB Bank by signing a 6-month, 6%, interest-bearing note. Assuming year ended is 31 December 2018. Required: a) On what date does this note mature? b) How much interest expense results from this note in 2018? c) How much interest expense results from this note in 2019? d) Prepare journal entries to record (1) issuance of the note (2) accrual of interest at the end of December 2018, and (3) payment of the note at maturity. Famous Bookshop sells books to customers. The business owned by Mr. Previn. The following shows the list of transactions occurred in the month of April 2019. 1. 2. 3. 4. 5. 6. 7. 8. 9. 10. 11. Purchased 200 books from Wiluy on credit, each book cost RM10.00. Purchased 10 new book shelves with a total cost RM2,000 from Deco Enterprise on credit. Sold 50 books with a total RM1,000 to Clever School on credit. The business bought a new computer RM2,000 from Computer World Sdn Bhd. Mr Previn paid RM400 deposit by cash and the rest would be on credit. Sold books to customers in cash RM5,000. Settled the amount owing to Wiluy and receiving RM200 discount. Mr Previn used cash on hand from the business to pay off his personal utility bill that cost RM500. Received RM50 interest from the term deposit, transferred into business bank account. Transferred RM2,000 cash into business bank account. Received a cheque from Clever School for RM1,000 as full settlement. Paid monthly salary to Fattiha by cash RM1,000. Required: a) Prepare journal entries to record the above transactions. b) Prepare Bank account at April 2019. Part B On 1st August 2018, Mickey Company borrows RM100,000 from HRB Bank by signing a 6-month, 6%, interest-bearing note. Assuming year ended is 31 December 2018. Required: a) On what date does this note mature? b) How much interest expense results from this note in 2018? c) How much interest expense results from this note in 2019? d) Prepare journal entries to record (1) issuance of the note (2) accrual of interest at the end of December 2018, and (3) payment of the note at maturity.

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There are two parts to the question part A which asks for journal entries and Bank accounts at April 2019 and part B which asks about Mickey companys ... View the full answer