Reference no: EM132640936
Question 1 - Jet is owner of Jet Cafe. At the end of each month, Jet prepares a bank reconciliation statement for his business bank account. At 31 December 2019 his ledger balance was RM1,869 (credit) and his bank statement showed that he had funds of RM210 at the bank.He has the following information:
(i) Jet has arranged for RM1,800 to be transferred from his personal bank account into the business bank account. The bank made the transfer on 30 December, but Jet has not made any entry for it in his records.
(ii) On 21 December, Jet withdrew RM300 cash which he did not record.
(iii) Cheque number 202018, which Jet issued to a supplier, appears on the bank statement as RM550. Jet incorrectly recorded the cheque as RM560.
(iv) The bank debited Jet's account with charges of RM200 during December. Jet has not recorded these charges.
(v) On 31 December, Jet lodged RM450. On the bank statement, this amount is dated 3 January 2020.
(vi) Jet was advised by the bank that he earned RM62 interest for the period in December that his account was in credit. Jet recorded this in December, but the bank did not credit his account until January 2020.
(vii) Three of the cheques issued in December, with a total value of RM1,005, were not debited on the bank statement until after 31 December.
(viii) A cheque for RM276, issued to a supplier, was cancelled but Jet has not recorded the cancellation of the cheque.
Required -
(a) Show the bank account in Jet's general ledger, including any adjusting entries required due to the information given in points (i) to (viii). Note: You MUST present your answer in a format which clearly indicates whether each entry is a debit or a credit.
(b) Prepare a reconciliation of the bank statement balance to the corrected balance on the bank account in Jet's general ledger.
(c) Indicate how the bank balance will be reported in Jet's final accounts and the amount to be reported.
Question 2 - After you have prepared the trial balance for Question 4, you notice the following information:-
(i) Telephone bill for December amounting to RM200 has been received but not recorded.
(ii) One day of casual wages amounting to RM125 remains unpaid and unrecorded at December 31; the amount will be included with the first Friday payment in January 2020.
(iii) Included in rental expenses is rental paid for January 2020 amounting to RM2,000.
(iv) Half of the commission revenue has been earned at December 31, 2019.
Required -
(a) Prepare the adjusting journals.
(b) Prepare the adjusted Trial Balance.