Part A The following events occurred for HSU Limited for the month of January 2022. Date...

 

Transcribed Image Text:

Part A The following events occurred for HSU Limited for the month of January 2022. Date 1 Jan Prepaid S100,000 of office rent for the period from 1 January to 28 February 2022. 10 Jan Performed services for customers and received $120,000 cash. 12 Jan Performed services for customer on account totalling S80,000. 18 Jan Collected $40,000 cash on account from the customer. 25 Jan Purchased computer for $35,000 in cash. 31 Jan Borrowed $500,000 from Bank by signing a note payable. Paid $2,000 cash for electricity and $19,000 cash for January's salary. 31 Jan 31 Jan Adjusted the rent expense for January 2022 (refer to 1 January). Required: Prepare the above journal entries for the month of January 2022 for HSU Limited. Narration is NOT required. (17 marks) Part B Mr Lee runs a business of delivery services. He had the following queries regarding the financial statements prepared by his part-time accounts clerk. (1) An amount of repair and maintenance expense had been included in the income statement for the year even though it had not been paid by Mr Lee yet. (2) The family car of Mr Lee had not been reported as assets in the statement of financial position. Required: Explain to Mr Lee regarding his queries about the above accounting treatments. (6 marks) Part A The following events occurred for HSU Limited for the month of January 2022. Date 1 Jan Prepaid S100,000 of office rent for the period from 1 January to 28 February 2022. 10 Jan Performed services for customers and received $120,000 cash. 12 Jan Performed services for customer on account totalling S80,000. 18 Jan Collected $40,000 cash on account from the customer. 25 Jan Purchased computer for $35,000 in cash. 31 Jan Borrowed $500,000 from Bank by signing a note payable. Paid $2,000 cash for electricity and $19,000 cash for January's salary. 31 Jan 31 Jan Adjusted the rent expense for January 2022 (refer to 1 January). Required: Prepare the above journal entries for the month of January 2022 for HSU Limited. Narration is NOT required. (17 marks) Part B Mr Lee runs a business of delivery services. He had the following queries regarding the financial statements prepared by his part-time accounts clerk. (1) An amount of repair and maintenance expense had been included in the income statement for the year even though it had not been paid by Mr Lee yet. (2) The family car of Mr Lee had not been reported as assets in the statement of financial position. Required: Explain to Mr Lee regarding his queries about the above accounting treatments. (6 marks)

Answer rating: 100% (QA)

Journal Entries Account Title Prepaid Rent Date Debit Credit 1Jan 100000 Cash 100000 ... View the full answer