MAMA Consulting Services was established on 1 June 2015. The following transactions took place during the...

  

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MAMA Consulting Services was established on 1 June 2015. The following transactions took place during the first month. 1 June Mamat Mamut, the owner invested RM120,000 cash in the business, as its sole owner. 2 Hired two employees to work in the office. They will each be paid a salary of RM2,000 per month. 4 6 8 10 14 16 18 20 22 24 1. 2. Signed a 2 year rental agreement on the office; paid RM36,000 cash in advance for the first year rental. 3. Purchased equipment costing RM70,000. A cash payment of RM20,000 was made immediately; the remainder will be paid in 6 months. Paid RM3,000 cash for a 1 year insurance policy. Additional Information: A count of office supplies shows RM350 of unused supplies on 30 June. Purchased office supplies for RM1,000 cash. Provided services and earned RM30,000: RM10,000 in cash and RM20,000 on account. Paid RM800 to suppliers for accounts payable due. Received RM5,000 from customers in payment of accounts receivable. Received utility bills in the amount of RM400, to be paid next month. Paid in full the monthly salaries of the two employees. A customer paid RM3,500 in advance for services not yet provided. The equipment is expected to be used for five years and the salvage value is RM10,000. (Mama uses the straight line method for depreciation) The company has performed 80% of the services for the amount paid on 24 June. REQUIRED: Prepare journal entries to record each of the event listed including all the necessary adjustments. (10 Marks) (a) (b) (c) Post the journal entries to the three column ledger (accounts). (10 Marks) Prepare the Statement of Comprehensive Income and a Statement of Financial Position for month ending June 2015. (10 Marks) MAMA Consulting Services was established on 1 June 2015. The following transactions took place during the first month. 1 June Mamat Mamut, the owner invested RM120,000 cash in the business, as its sole owner. 2 Hired two employees to work in the office. They will each be paid a salary of RM2,000 per month. 4 6 8 10 14 16 18 20 22 24 1. 2. Signed a 2 year rental agreement on the office; paid RM36,000 cash in advance for the first year rental. 3. Purchased equipment costing RM70,000. A cash payment of RM20,000 was made immediately; the remainder will be paid in 6 months. Paid RM3,000 cash for a 1 year insurance policy. Additional Information: A count of office supplies shows RM350 of unused supplies on 30 June. Purchased office supplies for RM1,000 cash. Provided services and earned RM30,000: RM10,000 in cash and RM20,000 on account. Paid RM800 to suppliers for accounts payable due. Received RM5,000 from customers in payment of accounts receivable. Received utility bills in the amount of RM400, to be paid next month. Paid in full the monthly salaries of the two employees. A customer paid RM3,500 in advance for services not yet provided. The equipment is expected to be used for five years and the salvage value is RM10,000. (Mama uses the straight line method for depreciation) The company has performed 80% of the services for the amount paid on 24 June. REQUIRED: Prepare journal entries to record each of the event listed including all the necessary adjustments. (10 Marks) (a) (b) (c) Post the journal entries to the three column ledger (accounts). (10 Marks) Prepare the Statement of Comprehensive Income and a Statement of Financial Position for month ending June 2015. (10 Marks)

Answer rating: 100% (QA)

a Journal Entries Date Account Titles and Explanation Debit RM Credit RM 1Jun Cash 120000 Mamat Mamu... View the full answer