The following shows the unadjusted Trial Balance of Services Sdn Bhd as of 31 March 2021 is as follows:

Services Sdn Bhd  Unadjusted Trial Balance  as of 31 March 2021
	Debit	Credit
	RM	RM
Cash at Bank	75,000
Debtors	187,500
Machinery	800,000
Furniture	40,000
Office Equipment	50,000

Creditors		125,000
Loan @ 3.5% Interest		500,000
Capital, Services Sdn Bhd		500,000
Withdrawals	25,000
Service Revenue		440,000
Prepaid Rent	240,000
Electricity expense	39,000
Salary Expense	96,000
Interest Expense	12,500
	1,565,000	1,565,000

The following adjustments have not been considered for the year ended 31 March 2021: 

• Provision for doubtful debts is to be estimated at 3.5% of Debtors.  

• Accrued Service Revenue, RM60,000. 

• Rent paid in advance for the month of March 2021 has expired. RM240,000 rent was paid in advance for a twelve (12) months period. 

• Depreciation on the Machinery is required to be recorded using the reducing balance method.  Assume a useful life of four years. 

• Depreciation on the Office Equipment and Furniture is required to be recorded using the straight-line method. Assume a useful life of six years for both assets, and a salvage value of RM4000 and  RM2000, respectively. 

• RM2,500 unearned revenue was mistakenly recorded as service revenue during the period. 

• Interest Expense for the month of March 2021 has not been recorded yet.  

 

Required:

1) Prepare the adjusting entries for the above adjustments. (Show workings) 

2) Prepare Services Sdn Bhd Statement of Comprehensive Income (Income Statement) for the month ended 31 March 2021.  

3) Prepare Services Statement of Financial Position as of 31 March 2021.