Question

Exercise 3.18 Please! Thank you

(v) Sales revenl Prepare a cash flows statement for the year ended 31 December 2016 using the Required indirect method. ST3.18 The trial balance for Salsabil Enterprise for the year ended 31 December 2016 is as follows: Salsabil Enterprise Trial balance as at 31 December 2016 Debit Account Credit (RM) (RM) Cash 4,200 Trade receivables 20,000 Notes receivable 10,000 Inventory 24,000 Prepaid rental 2,400 Equipment Accumulated depreciation-equipment 18,000 4,000 Trade payables 26,400 Capital, Salihin 33,200 Sales 176,000 Cost of goods sold 92,000 Wages expenses 40,000 Miscellaneous expenses 24,000 5,000 Income tax 239,600 Total 239,600 Additional information: (i) Accrued interest on notes receivable is RM1,000. (ii) Depreciation on the equipment is RM2,000 (iii) Accrued wages is RM1,200 (iv) Accrued utilities is RM800 (charged to miscellaneous expenses account Fundar (v) Rental which is due is RM1,000 (vi) Cash drawings by Salihin is RM2,800 (vii) Cash of RM400 is received from a customer for a debt which was wrongly credited to the trade payables. Required: (a) Prepare adjusting journal entries for transactions ()-(vi). (b) Post the adjusting journal entries in (a) to the related ledger accounts as listed in the trial balance. Any account which is not in the list has to be created Prepare the adjusted trial balance as at 31 December 2016. (d) Prepare the income statement and statement of changes in equity for the year ended 31 December 2016. (e) Prepare the statement financial position as at 31 December 2016. ST3.19 The income statement for Nazilah Ltd for the year ended 31 December 2016 is as follows:

Answer 1

Adjusting entries Debit No. Account tiltes Credit 1 Interest receivable 1000 1000 Interest revenue 2 Depreciation expense Accumulated depreciatiion--equipment 2000 2000 3Wages expense 1200 Wages payable 1200 4Miscellaneous expenses 800 Accrued expense 800 (you can use trade payable if you want) 5 Rent expense 1000 1000 Prepaid rental 6Drawings. Salihin 2800 cash 2800 7 Trade payables 400 Trade receivables 400

Cash Accumulated depreciation Debit credit balance balance Debit credit Date Date 4000 31-Dec 4200 31-Dec 2800 1400 6000 6 2 2000 Trade payables credit Trade receivables balance balance Debit credit Debit Date Date 31 - Dec 26400 20000 31-Dec 400 19600 400 26000 7 7 Capital salihin Debit Notes receivables Debit credit Date credit balance Date balance 10000 31-Dec 33200 31-Dec Prepaid rental Sales balance credit Date balance Debit Debit credit Date 176000 2400 31-Dec 31-Dec 1400 5 1000 Interest revenue Equipment credit Date balance Debit credit balance Debit 1000 Date 1000 18000 31-Dec Wages payable Debit Cost of goods sold Debit credit balance Date credit balance Date 1200 3 1200 92000 31-Dec Accrued expense Debit credit balance 800 Wages expense Date credit balance Debit 800 Date 31-Dec 40000 1200 3 41200 Inventory credit Debit balance Date Miscellaneous expense 31-Dec 24000 Debit balance credit Date 31-Dec 24000 income tax 800 Debit balance 24800 Date credit 4 5000 31-Dec Rent expense credit 1000 Date Debit ba Drawings, Salih Debit Date credit balance 1000 5 6 2800 2800 Depreciation expense Debit credit balance Interest receivable Date 2000 credit Date balance 2 2000 Debit 1000 1000

Trial balance Cash 1400 Trade receivables Notes receivables Inventory Prepaid rental 19600 10000 24000 1400 Interest receivable 1000 Equipment Accumulated depreciation Trade payables |Wages payable Accrued expense Capital salihin Drawings, Salihin Sales 18000 6000 26000 1200 800 33200 2800 176000 Interest revenue 1000 Cost of goods sold 92000 Wages expense Miscellaneous expense 41200 24800 Rent expense 1000 Depreciation expense Income tax 2000 5000 totals 244200 244200 Income statement Sales 176000 177000 Interest revenue 1000 Less:expenses Cost of goods sold Wages expense Miscellaneous expense 92000 41200 24800 Rent expense 1000 2000 Depreciation expense Income tax 5000 166000 Net income 11000 Statement of changes in equity Capital salihin Add:net income 33200 11000 2800 Less:drawings Capital salihin 41400

Balance sheet Assets Cash 1400 Trade receivables 19600 Notes receivables 10000 Inventory 24000 1400 Prepaid rental Interest receivable 57400 1000 Equipment Accumulated depreciation 18000 12000 -6000 total assets 69400 Liabilites Trade payables Wages payable Accrued expense 26000 1200 800 toal liabilties 28000 Owners equity Capital salihin 41400 total laubilties equity 69400