Question

quire Question 5 On 1" July 2019, the ledger of Ohsom Sdn. Bhd. contains the following liabilities accounts: Ringgit Malaysia(RM) Accounts Payable Unearned Service Revenue 52,000 16,000 During the month, the following transactions occurred. 1 Provided services for customers who had made advance payments of RM10,000. 15 Borrowed RM50,000 from MyBank on 12 months, 8% notes payable. 25 Paid RM15,432 for accounts payable by cheque. Required: a) Joumalize the above transactions. b) Record the adjusting entry for interest payable on 31 July 2019 c) Prepare the current liabilities section of Statement of Financial Position at 31" July 2019.

Answer 1

a)

Date	Account title	Debit	credit
1	Unearned service revenue	10000
	Service revenue		10000
15	Cash	50000
	8% Notes payable		50000
25	Accounts payable	15432
	cash		15432

b)

Date	Account title	Debit	credit
31July 2019	Interest expense	167
	Interest payable		167
	[Being interest accrued for 50000*8%*.50/12]

c)

BALANCE SHEET AS ON 31 2019
Current liabilities
Accounts payable [52000 - 15432]	36568
Unearned service revenue [16000-10000]	6000
8% Note payable	50000
Interest payable	167
Total current liabilities	92735

**Liabilities payable within 12 months from reporting period is classified as current liabilities .

Note payable since payable within 12 months from reporting period (31July 2019) will be classfied as current liability.