Reference no: EM132366645

Business Accounting Assignment -

Please answer ALL questions in this assignment.

Question 1 - Alan runs his own e-marketing consulting business called Alan E-Marketing. On 1^st January 2019, the business of Alan E-Marketing had the following accounts and balances in its general ledger.

For the month of January, Alan E-Marketing completed the following transactions.

Jan 4 - Purchased office equipment RM3,800 on credit from Jop Office Supplies.

Jan 8 - Received a cheque of RM7,500 from accounts receivable.

Jan 10 - Provided consultancy service on credit to Frankie for RM4,500.

Jan 13 - Paid the balance due of RM6,000 to accounts payable by cheque.

Jan 17 - Paid in full to Jop Office Supplies for the office equipment bought on January 4.

Jan 20 - Received RM2,600 commission by cheque for introducing a client to another business.

Jan 31 - Paid rent RM1,500 by cheque.

Required:

a. Record the opening balances and the transactions for the month of January in the GENERAL LEDGER.

b. Prepare a TRIAL BALANCE from the general ledger balances as at 31^st January 2019.

Question 2 - Prepare adjusting journal entries for Blue Gardening in the GENERAL JOURNAL for the year ended 31^st December 2018, for each of these situations. Narratives for each entry are required.

a. Blue Gardening received RM6,000 from a client on November 15, 2018, for gardening services to be performed in December 2019, January 2020, and February 2021. The RM6,000 was recorded in Unearned Revenue on November 15. By the end of December, the gardening services for December have been performed.

b. Blue Gardening invested RM100,000 into a 5% government bond some years ago. The 5% interest is due to be paid on 31^st December every year. However, Blue Gardening has yet to receive the cheque from the government by 31^st December 2018.

c. Blue Gardening pays a total wage of RM5,000 every week to all of its staff working for a five-day workweek. Due to some unforeseen circumstances, the wages for the final week have not been paid.

d. Blue Gardening paid RM24,000 for insurance for 12 months beginning on 1^st September 2018. The amount was recorded as Prepaid Insurance on 1^st September.

e. Blue Gardening purchased a RM3,500 equipment on 1^st January 2018. It has a useful life of three years and it will worth about RM500 at the end of three years. Blue Gardening uses the straight-line depreciation method.

Question 3 - Wario Widgets uses a perpetual inventory system and it uses the FIFO (First-In, First-Out) costing method. It entered into the following purchases and sales transactions for March.

Required: Apply the FIFO costing method to compute the gross profit, the cost of goods purchased, cost of goods sold, and inventory balance for each transaction.

Prepare your answers using the format below.

Question 4 - Zel Enterprise most recently reconciled its bank statement and book balances of cash on 30 June 2019 and reported two cheques outstanding at that time, No. 1001 for RM878 and No. 1020 for RM1,670. The following information is available for its 31 July 2019 reconciliation:

From the 31 July Bank Statement

From the accounting records of Zel Enterprise

Additional information:

i. Cheque No. 1028 is correctly drawn for RM795 to pay for July utilities; however, the record-keeper misread the amount and entered it in the accounting records with a debit to Utilities Expense and a credit to Cash for RM785. The bank paid and deducted the correct amount.

ii. The non-sufficient funds (NSF) cheque shown in the statement was originally received from a customer, Ariel Fish, in payment of her account. The company has not yet recorded its return.

iii. The credit memorandum (CM) is from RM6,700 note that the bank collected for the company. The bank deducted an RM100 collection fee and deposited the remainder in the company's account. The collection fee have not yet been recorded.

iv. The bank levied a service charge (SC) of RM15 on 31 July 2019.

Required:

a. Prepare the 31 July 2019 bank reconciliation for Zel Enterprise.

b. Prepare the journal entries to adjust the book balance of cash to the reconciled balance.

Question 5 - The following year-end unadjusted trial balance is for Jaya as at 31 December 2018.

Additional information:

i. Depreciation on building is at 2% per annum.

ii. Depreciation on office equipment is at 20% per annum.

iii. Doubtful debts are estimated to be 1% of service fees earned.

Required:

a. Prepare the Statement of Comprehensive Income for the Year Ended 31 December 2018.

b. Prepare the Statement of Financial Position as at 31 December 2018.