GROUP PROJECT

BT11003 PRINSIP PERAKAUNAN

Projek Kumpulan (10%). Satu kumpulan 5 orang pelajar.

YB is the owner of Wan Bah Trading Enterprise, he closes the business accounts
every month end. The company applies perpetual inventory system in
maintaining its inventory accounts. The ledger balances of the company as at 31
December 2010 as follows:

Accounts (RM)
Cash in Hand 4,550
Cash at Bank 25,000
Accounts receivable 33,700
Inventory 25,000
Office supplies 5,500
Prepaid insurance 2,160
Equipment 85,000
Motor Vehicle 48,000
Accumulated depreciation:
- Equipment 18,000
- Motor Vehicle 12,000
Notes payable 37,900
Accounts payable 48,000
Unearned revenue 2,500
Salary payable 10,350
Drawings, YB 10,000
Capital, YB 100,00
Bank loan 0
Income tax payable 15,000
Accrued interest 1,200
1,500

The following transactions were occurred in December 2010.

Dates: Transactions

1 Dec Purchase merchandise from Alladin Company RM2,500. FOB shipping

point, terms 5/15, n/30. The transportation cost paid RM200.

3 Dec Sold merchandise to Jingle Enterprise RM18,700, term 3/10, n/30, FOB
shipping point. The cost of merchandise RM7,900. The
transportation cost incurred was RM150.

5 Dec Received credit from Alladin Company for the merchandise returned
RM500.

6 Dec Paid advertising expense RM390.

9 Dec Paid Alladin in full.

10 Dec Sold merchandise to Dragon Tales Company on credit, listed price
RM20,000, trade discount 15%, credit term 2/10, n/EOM. FOB
destination. The cost of merchandise RM6,800.

12 Dec Purchase merchandise from Abu Kassim RM5,000 on credit.

14 Dec Paid transportation cost 10 Oct sales RM270.

17 Dec Allow credit to Dragon Tales for the merchandise returned RM500.
The merchandise had cost RM240.

20 Dec Received payment in full from Jingle Enterprise.

23 Dec Sold merchandise for cash RM5,000 which had cost of

RM2,300.

28 Dec Paid utility expense RM300, salary expense RM7,000, sundry

expenses RM5,000.

29 Dec Paid RM15,000 on notes payable due.

30 Dec Received RM2,300 interest from fixed deposit account.

31 Dec Owner withdrew RM1,500 cash for personal use.

The following adjustments are to be made at the end of December 2010:

1. The annual depreciation for both equipment and van are RM8,400 and
RM4,800 respectively.

2. A count on office supplies showed a balance of RM1,500 at the end of the

month.

3. Utility expense accrued RM200.

4. On 1 Sept 2010, the company purchase a 12-month insurance policy for

RM2,160

5. Accrued salaries at 31 Dec 2010 are RM1,800.

6. Received RM2,500 cash for future services to be provided to a customer.

Required:

a. Prepare the journal entries from the above transactions.

b. Post the journal entries to the ledger T accounts.

c. Prepare the unadjusted trial balance.

d. Prepare the journal adjusting entries for the above information.

e. Prepare the adjusted trial balance as at 31 Dec 2010.

 f. Prepare the profit and loss accounts or income statement for the month
ended 31 Dec 2010.

g. Prepare the statement of Owner’s Equity for the year ended 31 Dec 2010.

h. Prepare the balance sheet as at 31 Dec 2010.

i. Journalise the closing entries for the month.

THIS PROJECT MUST BE TYPED AND WITH UMS COVER PAGE.

LAST DATE TO SUBMIT ON 4 APRIL 2011.

1.3.2011