Mr. Sabri Salleh worked as an accountant with Saderi Company for the past seven years. sudden death due to Covid 19, had affected accounting closing preparation for Sa Company. Before his death, he managed to prepare a halfway unadjusted trial balance a December 31, 2020, with several items are still in various respective ledger accounts. Incomplete and Unadjusted Trial Balance as at December 31, 2020 Debit (RM) 380,000 Credit (RM) Property, plant and equipment Accumulated depreciation 213,400 Cash 133,800 53,950 260,000 100,000 Accounts receivable Inventories, December 31, 2020 10% Long-term Islamic investments Accounts payable Sales revenue 39,800 970,000 320,000 Ordinary shares capital Administrative expense Selling expense Other expenses Retained earnings, December 31, 2020 67,500 91,000 21,000 167,000 Various balances that are still in ledgers: Patent RM80,000; Prepaid expense RM27,C Allowance for doubtful account RM1,900; Sukuk (long-term debt) RM150,000; Unear revenue RM80,000; Cost of goods sold RM712,000; Supplies RM10,000; and Income expense RM5,850. To make it worst, there are several transactions yet to be accounted for at year end, Decem 31, 2020, as follow: a. Documents showed that 60% of the unearned sales revenue has been earned in 2020. b. Complaint received from the company's sales agent, Mr. Azman who said that he was yet to be paid for December 2020's salary amounted to RM5,800. c. One of the customers, XYZ Sdn, Bhd., was declared bankrupt and RM1,400 of its account receivable balance is to be written-off. It is also estimated that due to
Mr. Sabri Salleh worked as an accountant with Saderi Company for the past seven years. sudden death due to Covid 19, had affected accounting closing preparation for Sa Company. Before his death, he managed to prepare a halfway unadjusted trial balance a December 31, 2020, with several items are still in various respective ledger accounts. Incomplete and Unadjusted Trial Balance as at December 31, 2020 Debit (RM) 380,000 Credit (RM) Property, plant and equipment Accumulated depreciation 213,400 Cash 133,800 53,950 260,000 100,000 Accounts receivable Inventories, December 31, 2020 10% Long-term Islamic investments Accounts payable Sales revenue 39,800 970,000 320,000 Ordinary shares capital Administrative expense Selling expense Other expenses Retained earnings, December 31, 2020 67,500 91,000 21,000 167,000 Various balances that are still in ledgers: Patent RM80,000; Prepaid expense RM27,C Allowance for doubtful account RM1,900; Sukuk (long-term debt) RM150,000; Unear revenue RM80,000; Cost of goods sold RM712,000; Supplies RM10,000; and Income expense RM5,850. To make it worst, there are several transactions yet to be accounted for at year end, Decem 31, 2020, as follow: a. Documents showed that 60% of the unearned sales revenue has been earned in 2020. b. Complaint received from the company's sales agent, Mr. Azman who said that he was yet to be paid for December 2020's salary amounted to RM5,800. c. One of the customers, XYZ Sdn, Bhd., was declared bankrupt and RM1,400 of its account receivable balance is to be written-off. It is also estimated that due to
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:January 1, 2020, was RM19,200.
h. The patent was acquired on March 31, 2020, and has a useful life of ten years.
i. The company purchased a new lorry in December 2020 for RM160,000 and
signed a note payable for the amount. No depreciation is allocated in the year of
acquisition.
j. Prepaid expense expired into administrative expense amounted to RM12,000.
Required:
1. Journalize the above transactions from (a) to (jG).
2. Prepare the Statement of Profit or Loss and Other Comprehensive Income, and Statement
of Changes in Equity for the year ended December 31, 2020, and a Statement of Financial
Position as at December 31, 2020.
Transcribed Image Text:Mr. Sabri Salleh worked as an accountant with Saderi Company for the past seven years. His
sudden death due to Covid 19, had affected accounting closing preparation for Saderi
Company. Before his death, he managed to prepare a halfway unadjusted trial balance as of
December 31, 2020, with several items are still in various respective ledger accounts.
Incomplete and Unadjusted Trial Balance
as at December 31, 2020
Debit (RM)
380,000
Credit (RM)
Property, plant and equipment
Accumulated depreciation
213,400
Cash
133,800
53,950
260,000
100,000
Accounts receivable
Inventories, December 31, 2020
10% Long-term Islamic investments
Accounts payable
39,800
970,000
320,000
Sales revenue
Ordinary shares capital
Administrative expense
Selling expense
Other expenses
Retained earnings, December 31, 2020
67,500
91,000
21,000
167,000
Various balances that are still in ledgers: Patent RM80,000; Prepaid expense RM27,0003;
Allowance for doubtful account RM1,900; Sukuk (long-term debt) RM150,000; Unearned
revenue RM80,000; Cost of goods sold RM712,000; Supplies RM10,000; and Income tax
expense RM5,850.
To make it worst, there are several transactions yet to be accounted for at year end, December
31, 2020, as follow:
a. Documents showed that 60% of the unearned sales revenue has been earned in
2020.
b. Complaint received from the company's sales agent, Mr. Azman who said that he
was yet to be paid for December 2020’s salary amounted to RM5,800.
c. One of the customers, XYZ Sdn, Bhd., was declared bankrupt and RM1,400 of
its account receivable balance is to be written-off. It is also estimated that due to
the prolonged pandemic, as high as 30% of the outstanding account receivable is
uncollectible at year end.
d. It is the company's policy that depreciation is to be provided on the company’s
property, plant and equipment at the rate of 10% on cost.
e. Despite the challenging economy, the board of directors of Saderi Company
declared 5% dividends on its ordinary shares which is to be paid on 10 January
2021.
f. Hibah (interest) on the 10% long-term Islamic investment is accrued at year-end.
The investment was made on September 1, 2020.
g. On July 1, 2020, Saderi Company sold for RM35,000 equipment which
originally cost RM48,000. Accumulated depreciation on this equipment at
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