ACC1014 – Principles of Financial Accounting

Tutorial 5 Questions
Problem question 1
1. Alan started Kaya-Raya Sdn. Bhd., a financial planning business, on 1
January 2019. The following are the accounts at the end of the first month
of business, before adjusting entries were recorded.

Account RM
Accounts Payable 3,000
Accounts Receivable 7,500
Cash 6,300
Consultation Revenue 9,250
Equipment 7,000
Alan, Capital 20,800
Alan, Drawings 250
Prepaid Rent 4,000
Supplies 8,000

Adjustment data:
(1) Supplies on hand at the end of the month, RM1,500
(2) Unbilled consultation revenue, RM8,500.
(3) Rent expense for the month, RM1,000.
(4) Depreciation on equipment, RM900.
(a) Prepare the required adjusting entries, adding accounts as needed.
(b) Prepare an adjusted Trial Balance for Kaya-Raya Sdn. Bhd. As at 31
January 2019.
(c) Prepare an adjusted Profit or Loss Statement for the period ended 31
January 2019.
(d) Prepare the Statement of Changes in Equity and the Statement of
Financial Position as at 31 January 2019

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Problem question 3

The unadjusted Trial Balance of Bengkel Huat Sdn Bhd on 31 December 2018is
as follows:
Bengkel Huat Sdn Bhd
Unadjusted Trial Balance as at 31 December 2018
Debit Credit
Cash 10,900
Supplies 38,225
Prepaid Insurance 5,000
Equipment 640,000
Accumulated Depreciation – Equipment 95,000
Motor Vehicles 330,000
Accumulated Depreciation – Motor Vehicle 150,000
Accounts Payable 40,336
Bank Loan 200,000
Huat Hee, Capital 80,000
Huat Hee, Drawings 24,000
Service Revenue 900,235
Salaries Expense 110,113
Rent Expense 120,000
Motor Vehicle Expense 180,000
Miscellanous Expense 7,000
1,465,571 1,465,571
Year-end adjustments are as follows:
(1) Supplies on hand at 31 December 2018, RM11,500
(2) Insurance premium expired during the year, RM4,500
(3) Depreciation of Motor vehicle during the year, RM50,000
(4) Depreciation of equipment during the year, RM45,000
(5) Salaries incurred but not paid at 31 December 2018, RM15,000

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Problem question 4
The unadjusted Trial Balance of Bengkel Huat Sdn Bhd on 31 December 2018is
as follows:
Bengkel Huat Sdn Bhd
Unadjusted Trial Balance as at 31 December 2018
Debit Credit
Cash 10,900
Supplies 38,225
Prepaid Insurance 5,000
Equipment 640,000
Accumulated Depreciation – Equipment 95,000
Motor Vehicles 330,000
Accumulated Depreciation – Motor Vehicle 150,000
Accounts Payable 40,336
Bank Loan 200,000
Huat Hee, Capital 80,000
Huat Hee, Drawings 24,000
Service Revenue 900,235
Salaries Expense 110,113
Rent Expense 120,000
Motor Vehicle Expense 180,000
Miscellanous Expense 7,000
1,465,571 1,465,571
Year-end adjustments are as follows:

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(6) Supplies on hand at 31 December 2018, RM11,500
(7) Insurance premium expired during the year, RM4,500
(8) Depreciation of Motor vehicle during the year, RM50,000
(9) Depreciation of equipment during the year, RM45,000
(10) Salaries incurred but not paid at 31 December 2018, RM15,000
(11) Interest expense incurred but not paid at 31 December 2018,
RM5,000. The bank loan to be repaid in full in 2025.
(a) Prepare the necessary adjusting journal entries. Include journal entry
explanations.
(b) Prepare an adjusted Trial Balance as at 31 December 2018.
(c) Prepare an Income Statement for the period ended 31 December 2018.
(d) Prepare the Statement of Changes in Equity and the Statement of
Financial Position as at 31 December 2018.

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