Journal for the adjusting entries on 31 December 2022. Statement of Comprehensive Income for the year ended 31 December 2022.

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
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Aveen, a sole trader, has the following Trial Balance as at 31 December 2022:

 

Accounts

Debit (RM)

Credit (RM)

Capital

 

121,050

Drawings

    8,000

 

Cash at bank

3,000

 

Cash in hand  

400

 

Accounts payable

 

  12,000

Accounts receivable  

30,000

 

Inventory as at 1 January 2022

23,000

 

Motor vehicle

40,000

 

Office equipment

60,000

 

Sales

 

130,000

Accumulated depreciation- Motor vehicle

 

8,000

Accumulated depreciation - Office equipment

 

12,000

Provision for doubtful debts

 

5,000

Purchases                                                                 

  90,000

 

Returns                                                                             

600

300

Carriage inwards                                                           

300

 

Motor running expenses                                         

1,000

 

Rent expenses                                                           

20,000

 

Telephone charges                                                       

400

 

Wages and salaries expenses                            

12,000

 

Insurance expenses

3,000

 

Postage and stamps expenses

    100

 

Office expenses

    1,300

 

Sundry expenses

300

 

Dividend income

 

2,000

Interest income

 

3,000

Discount

200

250

Total

293,600

293,600

 

The inventory for the company as at 31 December 2022 was RM30,000. Additional information:

  1. i) Wages and salaries are accrued by RM140.
  2. ii) Prepaid rent at 31 December 2022 is RM1,000.

iii)         Motor running expenses are accrued by RM200.

  1. iv) Increase in the provision for doubtful debts by RM200.
  1. v) Depreciation is yet to be provided for the year. All non-current assets are to be depreciated by 10% on cost based on the balance of its account on 31 December 2022.

You are required to prepare the following for the company:

 

Journal for the adjusting entries on 31 December 2022.

  1. Statement of Comprehensive Income for the year ended 31 December 2022.
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