For each of the two items below, the company keeps its records on a cash basis....

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For each of the two items below, the company keeps its records on a cash basis. The company's accounting year ended 30 September each year. (4) On 2 February 2021, the company paid insurance premium for its premises amounted to RM60,000 for the year ended 31 January 2022. It was recorded as follows: RM 60,000 2021 February 2 Dr Insurance Cr Cash No further entries were made with respect to the rental. Required: RM 60,000 (a) Calculate the amount of insurance to be recognised in the financial statements for the year ended 30 September 2021. (b) Show the journal and ledger entries that need to be made to adjust the company's year ended 30 September 2021 accounts to an accrual basis and the closing of the insurance account. (B) The company invests RM750,000 in a 6-months fixed deposit at a commercial bank on 1 September 2021. Interest rate stated at 4% per annum. The following entry was made on 1 September 2021: 2021 Sept 1 RM Dr Investment Cr Cash 750,000 No further entries were made in the company's books in 2020 since no interest was received in cash during that year. RM 750,000 Required: (a) When the fixed deposit mature on 1 March 2022, how much should the company receive? (b) Show the journal and ledger entries to adjust the cash basis accounts to an accrual basis and the closing of the interest received account for the year ended 30 September 2021. For each of the two items below, the company keeps its records on a cash basis. The company's accounting year ended 30 September each year. (4) On 2 February 2021, the company paid insurance premium for its premises amounted to RM60,000 for the year ended 31 January 2022. It was recorded as follows: RM 60,000 2021 February 2 Dr Insurance Cr Cash No further entries were made with respect to the rental. Required: RM 60,000 (a) Calculate the amount of insurance to be recognised in the financial statements for the year ended 30 September 2021. (b) Show the journal and ledger entries that need to be made to adjust the company's year ended 30 September 2021 accounts to an accrual basis and the closing of the insurance account. (B) The company invests RM750,000 in a 6-months fixed deposit at a commercial bank on 1 September 2021. Interest rate stated at 4% per annum. The following entry was made on 1 September 2021: 2021 Sept 1 RM Dr Investment Cr Cash 750,000 No further entries were made in the company's books in 2020 since no interest was received in cash during that year. RM 750,000 Required: (a) When the fixed deposit mature on 1 March 2022, how much should the company receive? (b) Show the journal and ledger entries to adjust the cash basis accounts to an accrual basis and the closing of the interest received account for the year ended 30 September 2021.

Answer rating: 100% (QA)

a Calculate the amount of insurance to be recognized The insurance premium was paid on 2 February 2021 covering the year ended 31 January 2022 Therefo... View the full answer