Below is an unadjusted trial balance for Muezza Bhd on 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 12,000 336,400 336,400 Additional information: An analysis of prepaid advertising shows that RM500 of the balance was consumed. Supplies count on 30 June 2020 shows that RM1,200 is on hand. Equipment has an estimated useful life of 10 years. 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. Unpaid salary of RM5,800 for the month of June 2020 has not been recorded. Unpaid utilities bill for June 2020 amounting to RM3,500 has not been recorded. Accrued revenues of RM7,800 previously recorded to accounts receivable were collected. Rent expense of RM5,000 for July 2020 has been paid and recorded directly to rent expense in June 2020. 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 the next accounting period. The income tax expense of RM3,000 is not yet paid. Unrecorded and uncollected service revenue of RM9,000 has been earned. A two-year, RM1,800 insurance policy was purchased on 1 June 2020 and recorded to prepaid insurance. (Round up the answers to the nearest RM) 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 Prepare a Statement of Financial Position as at 30 June 2020 according to MFRS 101 Presentation of Financial Statement.
The Effect Of Prepaid Taxes On Assets And Liabilities
Many businesses estimate tax liability and make payments throughout the year (often quarterly). When a company overestimates its tax liability, this results in the business paying a prepaid tax. Prepaid taxes will be reversed within one year but can result in prepaid assets and liabilities.
Final Accounts
Financial accounting is one of the branches of accounting in which the transactions arising in the business over a particular period are recorded.
Ledger Posting
A ledger is an account that provides information on all the transactions that have taken place during a particular period. It is also known as General Ledger. For example, your bank account statement is a general ledger that gives information about the amount paid/debited or received/ credited from your bank account over some time.
Trial Balance and Final Accounts
In accounting we start with recording transaction with journal entries then we make separate ledger account for each type of transaction. It is very necessary to check and verify that the transaction transferred to ledgers from the journal are accurately recorded or not. Trial balance helps in this. Trial balance helps to check the accuracy of posting the ledger accounts. It helps the accountant to assist in preparing final accounts. It also helps the accountant to check whether all the debits and credits of items are recorded and posted accurately. Like in a balance sheet debit and credit side should be equal, similarly in trial balance debit balance and credit balance should tally.
Adjustment Entries
At the end of every accounting period Adjustment Entries are made in order to adjust the accounts precisely replicate the expenses and revenue of the current period. It is also known as end of period adjustment. It can also be referred as financial reporting that corrects the errors made previously in the accounting period. The basic characteristics of every adjustment entry is that it affects at least one real account and one nominal account.
Below is an unadjusted
|
Muezza Bhd Unadjusted Trial Balance 30 June 2020 |
||
|
|
Debit (RM) |
Credit (RM) |
|
Cash |
125,400 |
|
|
|
25,000 |
|
|
Supplies |
1,500 |
|
|
Prepaid insurance |
4,500 |
|
|
Prepaid advertising |
2,000 |
|
|
Land |
105,000 |
|
|
Equipment |
10,000 |
|
|
|
|
2,000 |
|
Accounts payable |
|
12,000 |
|
Notes payable |
|
20,000 |
|
Unearned service revenue |
|
30,000 |
|
Share capital |
|
136,400 |
|
|
|
5,000 |
|
Service revenue |
|
125,000 |
|
|
|
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 |
|
|
|
336,400 |
336,400 |
Additional information:
- An analysis of prepaid advertising shows that RM500 of the balance was consumed.
- Supplies count on 30 June 2020 shows that RM1,200 is on hand.
- Equipment has an estimated useful life of 10 years.
- 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.
- Unpaid salary of RM5,800 for the month of June 2020 has not been recorded.
- Unpaid utilities bill for June 2020 amounting to RM3,500 has not been recorded.
- Accrued revenues of RM7,800 previously recorded to accounts receivable were collected.
- Rent expense of RM5,000 for July 2020 has been paid and recorded directly to rent expense in June 2020.
- 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 the next accounting period.
- The income tax expense of RM3,000 is not yet paid.
- Unrecorded and uncollected service revenue of RM9,000 has been earned.
- A two-year, RM1,800 insurance policy was purchased on 1 June 2020 and recorded to prepaid insurance.
(Round up the answers to the nearest RM)
- 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
- Prepare a
Statement of Financial Position as at 30 June 2020 according to MFRS 101 Presentation of Financial Statement.
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