Goods sold and delivered to a customer, Karim, in the amount of RM11,000 on 29th December 2020
Question:
Goods sold and delivered to a customer, Karim, in the amount of RM11,000 on 29th December 2020 is not yet received. This sales transaction is not yet recorded
ii. The total sales included RM2,000 deposit from a customer for the booking fees of spare parts. The parts are expected to be delivered on 10 January 2021.
iii. It is estimated that the allowance for doubtful debt is RM1,000.
iv. The utility expense for December 2020 of RM400 is not yet recorded. The bill will be paid on 5 January 2021)..
v. RM6,000 of insurance is expired.
vi. Depreciation of property and equipment is RM20,000.
vii. A bank loan of RM60,000 from CEMB bank was approved and received on 1 July, 2020 with 5% interest per annum for 5 years tenure payable every 6 months. Business is using a flat interest rate. Interest and the portion of the bank loan’s principal payable were paid on 28th December, 2020. However, the interest payment was not yet recorded in the business book.
viii. Inventory count as at 31 December 2020 showed that inventories balance were only RM10,000 in its store
Required:
(a) Prepare the necessary adjusting journal entries (in general journal format) for fiscal year ended 31st December, 2020. Description is not required).
(b) Prepare adjusted trial balance as at 31 December 2020
Statistics for Business and Economics
ISBN: 978-0132930192
8th edition
Authors: Paul Newbold, William Carlson, Betty Thorne