Question

BAC1034 PRINCIPLES OF FINANCIAL ACCOUNTING QUESTION 1 [10 MARKS] iniri Listed below are business transactions. The company issues ordinary shares in exchange for RM25,000 cash. Purchased RM400 of supplies on credit. Purchased equipment for RM10,000, paying RM3,000 in cash and signed a 30-day, RM7,000, note payable. Real estate commissions billed to clients amount to RM4,000. Paid RM700 in cash for the current month's rent. Paid RM200 cash on account for supplies purchased in transaction 2. Received a bill for RM600 for advertising for the current month. Paid RM2,200 cash for salaries and wages. The company paid cash dividends of RM1,200. Received a check for RM3,000 from a client in payment on account for commissions billed in transaction 4. vosooo Required: (a) Prepare a tabular analysis by using the header below. Identify each transaction by number. Date Cash ASSETS Accounts Supplies Receivable Equipment LIABILITIES + Accounts Notes Payable Payable SHAREHOLDER'S EQUITY Share Revenues Expenses Dividend Capital (b) Journalize the transactions in general journal form. Identify each transaction by number. (c) Refer (b), calculate total ending cash balance by opening T-Account. Assume beginning balance for cash is RM15,000.

Answer 1

Req a) Tabular analysis ie. Accounting Equation analysis:
event	ASSETS				=	LIABILITIES +		SHAREHOLDERS' EQUITY
	Cash +	AR +	Supplies +	Equipment	=	AP +	NP +	Share Capi+	Revenues -	Exp.	Dividend
1	25000				=			25000
2			400		=	400
3	-3000			10000	=		7000
4		4000			=				4000
5	-700				=					-700
6	-200				=	-200
7					=	600				-600
8	-2200				=					-2200
9	-1200				=						-1200
10	3000	-3000			=
Total	20700	1000	400	10000	=	800	7000	25000	4000	-3500	-1200
G. Total				32100	=	32100

Req b) Journal Entries:
Date	Accounts Title	Debit RM	Credit RM
1	Cash	25000
	Share capital		25000
	(cash received as capital)
2	Supplies	400
	Accounts payable		400
	(supplies purchased on credit)
3	Equip.	10000
	Cash		3000
	Note payable		7000
	(being equipment purchased of cash & notes)
4	Accounts Receivables	4000
	Revenues		4000
	(billed to clients the commissions)
5	Rent exp.	700
	cash		700
	(rent paid for the month)
6	Accounts payable	200
	Cash		200
	(paid to creditors)
7	Advertising exp.	600
	Accounts payable		600
	(being advertising bill made payable)
8	Salaries & wages exp.	2200
	Cash		2200
	(salaries and wages paid)
9	Dividend	1200
	Cash		1200
	(dividend paid)
10	Cash	3000
	Accounts Receivables		3000
	(cash collected of AR)

Req c) CASH ACCOUNT
DEBIT	AMOUNT RM	CREDIT	AMOUNT RM
OB	15000	3	3000
1	25000	5	700
10	3000	6	200
		8	2200
		9	1200
		CB	35700
TOTAL	43000	TOTAL	43000
TOTAL ENDING CASH BALANCE = $35700