18 MarchCash sales of RM55,000.28 MarchPurchased goods from Syarikat Kempas Bhd for an invoice price of RM60,000,terms 2/10, n/30, FOB shipping point. KERUING paid freight costs of RM800.KERUING uses a periodic inventory system and the gross method of accountingfor purchase discounts.31 MarchPaid gross salaries of RM180,000 to employees. Deductions from the salaries areas follows:1. Employees' contribution to EPF of 11% of the gross salary.2. Zakat amounting to RM4,600.3. Health insurance premium of RM8,400.4. All payments to the respective departments are made on 25 April 2021.REQUIRED:(a) Prepare the journal entries to record the above transactions.(b) Prepare the necessary adjusting entry(ies) at 31 March 2021.(c) Prepare the liability section of Statement of Financial Position for KERUING as at 31 March2021. QUESTION 3Keruing Sejahtera Bhd (KERUING) is a company dealing with health food products operating inBukit Kayu Hitam, Kedah. The partial statement of the financial position of KERUING as at 31December 2020 is as follows:Current Liability12% Notes payableInterest payablePremium liabilityAccounts payableRM220,00026,40011,000180,000437,400EquityShare capital (1,500,000 ordinary shares)Retained earnings3,300,0001,400,0004,700,000Following are transactions related to equity and current liabilities that took place during the firstquarter of 2021:1 JanuaryDeclared a dividend of RM0.20 for each share outstanding on 31 December 2020.1 JanuaryKERUING settled 12% notes payable together with the total interest that have notbeen paid in last year by signing a new RM400,000, 8%, 5-year long term loan.31 January Purchased a machine for RM40,000, paying RM10,000 in cash and giving a one-year, 8% note for the balance.21 February Received RM20,000 in advance for RM40,000 health product ordered by SerayaBeauty Enterprise which to be delivered in March and April.5 MarchDelivered health product ordered on 21 February, worth RM15,000.

Name: 18 MarchCash sales of RM55,000.28 MarchPurchased goods from Syarikat
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Description: 18 MarchCash sales of RM55,000.28 MarchPurchased goods from Syarikat Kempas Bhd for an invoice price of RM60,000,terms 2/10, n/30, FOB shipping point. KERUING paid freight costs of RM800.KERUING uses a periodic inventory system and the gross method

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18 March Cash sales of RM55,000. 28 March Purchased goods from Syarikat Kempas Bhd for an invoice price of RM60,000, terms 2/10, n/30, FOB shipping point. KERUING paid freight costs of RM800. KERUING uses a periodic inventory system and the gross method of accounting for purchase discounts. 31 March Paid gross salaries of RM180,000 to employees. Deductions from the salaries are as follows: 1. Employees' contribution to EPF of 11% of the gross salary. 2. Zakat amounting to RM4,600. 3. Health insurance premium of RM8,400. 4. All payments to the respective departments are made on 25 April 2021. REQUIRED: (a) Prepare the journal entries to record the above transactions. (b) Prepare the necessary adjusting entry(ies) at 31 March 2021. (c) Prepare the liability section of Statement of Financial Position for KERUING as at 31 March 2021.

18 March Cash sales of RM55,000. 28 March Purchased goods from Syarikat Kempas Bhd for an invoice price of RM60,000, terms 2/10, n/30, FOB shipping point. KERUING paid freight costs of RM800. KERUING uses a periodic inventory system and the gross method of accounting for purchase discounts. 31 March Paid gross salaries of RM180,000 to employees. Deductions from the salaries are as follows: 1. Employees' contribution to EPF of 11% of the gross salary. 2. Zakat amounting to RM4,600. 3. Health insurance premium of RM8,400. 4. All payments to the respective departments are made on 25 April 2021. REQUIRED: (a) Prepare the journal entries to record the above transactions. (b) Prepare the necessary adjusting entry(ies) at 31 March 2021. (c) Prepare the liability section of Statement of Financial Position for KERUING as at 31 March 2021.

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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