Question

AICIRA REPAIRS began operations on January 2019. At the end of the first year operations, the trial balance before adjustment shows the following: AICIRA REPAIRS Trial Balance as at 31 December 2019 Debit(RM) Credit(RM) Cash 12,400 Bank 21,000 Accounts Receivable/ Debtors 3,200 Equipment 13,600 Vehicles 68,000 Building 102,000 Unearned revenue 5,500 Accounts Payable/ Creditors 55,700 Capital 37,000 Service Revenue 184,000 Supplies 35,000 Prepaid Insurance 6,000 Salaries Expense 21,000 282.200 282,200 Additional information: i. Supplies balance as at 31st December 2019, RM15,000. ii. Depreciation expenses for equipment, vehicles and building are as below: Item Equipment Vehicles Building Depreciation 1.360 6,800 5,900

Answer 1

Adjustment Entry Debit Credit Credit Adjusted Trial Balance Debit Credit 12,400 21,000 3,200 13,600 68,000 102,000 3,000 5,500 55,700 37,000 Un Adjusted Trial Balance Debit Cash 12,400 Bank 21,000 Accounts Receivable/Debtors 3,200 Equipment 13,600 Vehicles 68,000 Building 102,000 Unearned Revenue Accounts Payable/Creditors Capital Accumulated Depreciation Equipment Accumulated Depreciation-Vehicles Accumulated Depreciation-Buildings Salary Payable Supplies 35,000 Pre Paid Insurance 6,000 Service Revenue Supplies Expenses Depreciation Expenses-Equipment Depreciation Expenses-Vehicles Depreciation Expenses-Buildings Insurance Expenses Salaries Expense 21,000 282,200 1,360 6,800 5,900 2,000 20,000 2,000 3,000 2,500 55,700 37,000 1,360 6,800 5,900 2,000 15,000 4,000 184,000 187,000 20,000 1,360 6,800 5,900 2,000 2,000 41,060 20,000 1,360 6,800 5,900 2,000 23,000 298,260 282,200 41,060 298,260 Adjustment entry Date Account Title/Explanation Debit Credit 1 20,000 31-Dec-19 Supplies Expenses Supplies (35000-15000) 20,000 II 1,360 31-Dec-19 Depreciation Expenses-Equipment Accumulated Depreciation-Equipment 1,360 6,800 31-Dec-19 Depreciation Expenses-Vehicles Accumulated Depreciation-Vehicles 6,800 5,900 31-Dec-19 Depreciation Expenses-Buildings Accumulated Depreciation-Buildings 5,900 2,000 31-Dec-19 Salaries Expenses Salary Payable 2,000 IV 3,000 31-Dec-19 Unearned Revenue Service Revenue 3,000 V 2,000 31-Dec-19 Insurance Expenses Pre Paid Insurance 2,000 187,000 Statement of Profit and loss Service Revenue Less:Operating Expenses Supplies Expenses (20,000) Depreciation Expenses-Equipment (1,360) Depreciation Expenses-Vehicles (6,800) Depreciation Expenses-Buildings (5,900) Insurance Expenses (2,000) Salaries Expense (23,000) (59,060) 127,940 Net Income 37,000 Statement of Equity for the year ended 31-Dec-2019 Capital -beginning Add:Additional Contributions Net Income Total Less: Drawings Capital - ending 127,940 164,940 164,940 Asset Balance Sheet as on 31-12-2019 Liability Current Liability 12,400 Accounts Payable Current Asset Cash 55,700 Unearned Service revenue Salary Payable 2,500 2,000 Bank Accounts Receivable Prepaid Insurance Supplies 21,000 3,200 4,000 15,000 55,600 60,200 Fixed Asset Equipment Accumulated Depreciation-Equipment Vehicles Accumulated Depreciation-Vehicles Building Accumulated Depreciation-Building Equity Capital Add:Profit 37,000 127,940 13,600 (1,360) 68,000 (6,800) 102,000 (5,900) 164,940 169,540 Total Assets 225,140 Total Equity and liability 225,140