Reference no: EM132756278

Question - Below is an unadjusted trial balance for Muezza Bhd at 30 June 2020.

Muezza Bhd Unadjusted Trial Balance 30 June 2020

Debit (RM) Credit (RM)

Cash 125,400

Accounts receivable 25,000

Supplies 1,500

Prepaid insurance 4,500

Prepaid advertising 2,000

Land 105,000

Equipment 10,000

Accumulated depreciation - equipment 2,000

Accounts payable 12,000

Notes payable 20,000

Unearned service revenue 30,000

Share capital 136,400

Retained earnings 5,000

Service revenue 125,000

Deferred tax liability 1,000

Salaries expense 22,000

Supplies expense 200

Advertising expense 2,200

Travelling expense 1,400

Maintenance service expense 5,200

Rent expense 20,000

Gain on revaluation of land 5,000

Utilities expense 12,000

BALANCE AMOUNT 336,400 336,400

Additional information:

1. An analysis of prepaid advertising shows that RM500 of the balance was consumed.

2. Supplies count on 30 June 2020 shows that RM1,200 is on hand.

3. Equipment has an estimated useful life of 10 years.

4. The records show that 50% of the work for a RM10,000 fee received in advance from a customer and recorded last month, is now completed.

5. Unpaid salary of RM5,800 for the month of June 2020 has not been recorded.

6. Unpaid utilities bill for June 2020 amounting RM3,500 has not been recorded.

7. Accrued revenues of RM7,800 previously recorded to accounts receivable were collected.

8. Rent expense of RM5,000 for July 2020 has been paid and recorded directly to rent expense in June 2020.

9. An interest of 6% note payable which was issued on 1 June 2020 has not been recorded. 20% of the notes payable is due in next accounting period.

10. Income tax expense of RM3,000 is not yet paid.

11. Unrecorded and uncollected service revenue of RM9,000 has been earned.

12. A two year, RM1,800 insurance policy was purchased on 1 June 2020 and recorded to prepaid insurance.

Required -

(a) Prepare the necessary adjusting and correcting entries for Muezza Bhd.

(b) Prepare a Statement of Profit or Loss and Other Comprehensive Income for the year ended 30 June 2020 according to MFRS 101 Presentation of Financial Statement using one statement format.

(c) Prepare a Statement of Financial Position as at 30 June 2020 according to MFRS 101 Presentation of Financial Statement.