TUTORIAL 2

QUESTION 3

For each of the following events, assume the events are in order :

(a) Owner invested $50,000 cash into the business.

(b) Purchased $400 of supplies on account.
(c) Purchased equipment for $1,600 on account.
(d) Earned $1000 of revenue by performing a service for cash.
(e) Received utilities bill for $500, to be paid in the following period.
(f) Performed services for a customer valued at $3000 on account.
(g) Paid salaries to employees of $5,000.
(h) Purchased equipment for $5,000 cash.
(i) Collected $1,500 from a customer on an receivable.

(i) Prepare a Journal Entries

(ii) Prepare a " T"account
(iii) Prepare a Trial Balance
(iv) Prepare a Income statement
(v) Prepare a Statement of Changes in Owner's Equity
(vi) Prepare a Balance Sheet

ANSWER :
(i)
General Journal

Date Accounts and Explanation Debit (RM) Credit (RM)

a Cash 50,000.00
Capital 50,000.00
( Record the opening balance for assests and capital )

b Supplies 400.00
Account Payable 400.00
( Purchased supplies on credit )

c Equipment 1,600.00
Account Payable 1,600.00
( Purchased equipment on credit )

d Cash 1,000.00
Sevice revenue 1,000.00
( Earned revenue by performing a service for customer )

e Utilities Expense 500.00

Accrued Liabilities 500.00
( Utilities bill need to be paid on following period )

f Account Receivable 3,000.00

Service Revenue 3,000.00
( Performed a service for customer on credit )

g Salary 5,000.00
Cash 5,000.00
( Paid employees salaries )

h Equipment 5,000.00
Cash 5,000.00
( Purchased equipment for cash )

i Cash 1,500.00
Account Receivable 1,500.00
( Collected cash from customer on receivable )
TOTAL 68,000.00 68,000.00