The current liabilities of Perniagaan IZ Rizkyat as at 1 January 2013 were as follows: Pada 1 Januari 2013, buku lejar Perniagaan IZ Rizky menunjukkan baki liability semasa seperti berikut : RM Accounts payable Akaun belum bayar Unearned service revenue | 16,000 Hasil perkhidmatan belum terperoleh 44,600 Transactions which occurred during January 2013 Urusniaga yang berlaku sepanjang Januari 2013 Date Tarikh Made RM35,000 bank loan by issuing a note payable with interest rate of 9% and a maturity period of 6 months. Mendapat RM 35,000 dari CIMB untuk pinjaman berbentuk nota belum bayar, 6 bulan, 9%. Jan 1 Issued 12% 4-month note payable of RM20,000. Mengeluarkan nota 4 bulan, 12% untuk meminjam RM 20,000. Jan 1 |Jan 12 Provided service to customer who has paid RM10,000 in advance. Memberi perkhidmatan kepada pelanggan yang bayarannya RM 10,000 telah diterima terdahulu. Jan 20 Sold 600 units of new product on credit at RM55 each. The new products are entitled for 1-year warranty. Menjual satu keluaran baru secara kredit berjumlah 600 unit pada harga RM 55 seunit. Keluaran baru ini diberi jaminan selama 1 tahun. Required: (a) Prepare (CLO 3, C3) journal entries to record transactions involved (omit explanation). Rekodkan semua urusniaga tersebut ke jurnal (tanpa keterangan). (b) Prepare (CLO 3, C3) adjusting entries on 31 January 2013 for (omit explanation): Sediakan catatan pelarasan (tanpa keterangan) pada 31 Januari 2013 untuk: The notes payable held. Nota belum bayar yang masih dipegang. Company's estimation for warranty liability is 8% over sales. Replacement will be offered if the defective goods are returned within one-year warranty period. Anggaran liabiliti jaminan dengan andaian bahawa 8% dari jualan keluaran baru akan dipulangkan untuk digantikan dengan barang baru dalam tempoh jaminan 1 tahun. (e) Prepare (CLO 3, C4) the Statement of Financial Position (current liability section only) as at 31 January 2013. Sediakan catatan liabiliti semasa dalam Penyata Kedudukan Kewangan Perniagaan IZ Rizky pada 31 Januari 2013.
Reporting Cash Flows
Reporting of cash flows means a statement of cash flow which is a financial statement. A cash flow statement is prepared by gathering all the data regarding inflows and outflows of a company. The cash flow statement includes cash inflows and outflows from various activities such as operating, financing, and investment. Reporting this statement is important because it is the main financial statement of the company.
Balance Sheet
A balance sheet is an integral part of the set of financial statements of an organization that reports the assets, liabilities, equity (shareholding) capital, other short and long-term debts, along with other related items. A balance sheet is one of the most critical measures of the financial performance and position of the company, and as the name suggests, the statement must balance the assets against the liabilities and equity. The assets are what the company owns, and the liabilities represent what the company owes. Equity represents the amount invested in the business, either by the promoters of the company or by external shareholders. The total assets must match total liabilities plus equity.
Financial Statements
Financial statements are written records of an organization which provide a true and real picture of business activities. It shows the financial position and the operating performance of the company. It is prepared at the end of every financial cycle. It includes three main components that are balance sheet, income statement and cash flow statement.
Owner's Capital
Before we begin to understand what Owner’s capital is and what Equity financing is to an organization, it is important to understand some basic accounting terminologies. A double-entry bookkeeping system Normal account balances are those which are expected to have either a debit balance or a credit balance, depending on the nature of the account. An asset account will have a debit balance as normal balance because an asset is a debit account. Similarly, a liability account will have the normal balance as a credit balance because it is amount owed, representing a credit account. Equity is also said to have a credit balance as its normal balance. However, sometimes the normal balances may be reversed, often due to incorrect journal or posting entries or other accounting/ clerical errors.
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