QUESTION 1 - The transactions of GB Bhd for the month of December are as follows:
|
Date (December 2015)
|
Transactions
|
|
1
|
Paid insurance premium of RM10,000 for coverage against losses due to fire for a period of 36 months.
|
|
5
|
Purchased equipment on credit from ROCK Bhd. totalling RM5,000.
|
|
23
|
Paid salary of RM4,500 to temporary staff for the first two weeks of December.
|
Required: Prepare the journal entries for all the above transactions.
QUESTION 2 - KNCB Bhd. prepared the following unadjusted trial balance on 31 December 2015 for its first year of operation:
|
|
Debit (RM)
|
Credit (RM)
|
|
Cash
|
31,050
|
|
|
Accounts receivable
|
202,500
|
|
|
Supplies
|
48,600
|
|
|
Motor vehicles
|
1,023,300
|
|
|
Account payable
|
|
47,250
|
|
Unearned revenue
|
|
54,000
|
|
Capital
|
|
702,000
|
|
Drawings
|
40,500
|
|
|
Revenue earned
|
|
1,221,750
|
|
Salary expense
|
283,500
|
|
|
Petrol expense
|
24,300
|
|
|
Rent expense
|
72,000
|
|
|
Insurance expense
|
144,000
|
|
|
Utilities expense
|
155,250
|
|
|
Total
|
2,025,000
|
2,025,000
|
An analysis of the accounts shows the following:
i. Supplies on hand on 31 December were RM10,800.
ii. Depreciation on motor vehicles was estimated to be RM36,900.
iii. Unbilled revenue on 31 December was RM15,975.
iv. The amount of unearned revenue in the above balance represents all the advanced payments received from customers during the year for booking services. Sixty percent of the services have been provided by the end of the year.
v. Unpaid bills on utilities on 31 December amounted to RM5,400.
Required:
a) Prepare the adjusting entries for the above transactions at 31 December 2015.
b) Prepare the adjusted trial balance as at 31 December 2015 for KNCB Bhd.