Jadi Enterprise Is In A Business Of Selling Magazines Based On Subscriptions The Financial Year Ends On 31 December Eve 1 (26.81 KiB) Viewed 18 times
Jadi Enterprise is in a business of selling magazines based on subscriptions. The financial year ends on 31 December every year. The unadjusted trial balance of Jadi Enterprise as at 31 December is as follows: Jadi Enterprise Unadjusted Trial Balance 31 December 2001 Name of Accounts Debit (RM) Credit (RM) Cash Accounts Receivable 30,000 Notes Receivable 10% 27,000 Office Supplies Prepaid Rent 12,000 Office Equipment 62,000 Accounts Payable 35,413 Unearned Subscription Revenue 15,000 Capital 74,000 Drawings Subscription Revenue 36,000 Salaries Expense 4,000 Utilities Expense 345 Miscellaneous Expense 68 160,413 3,200 9,800 12,000 160,413
The following adjustments are necessary: a. A debt of RM2,400 is estimated to be uncollectible. b. Notes Receivable was issued on 1 July 2001 and interest is due every 6 months. c. At the end of the year, the balance of office supplies is RM4,500. d. Payment of rental made on 1 January this year is for the period of two-years. e Office equipment bought at the beginning of the year is given a depreciation rate of 10% per annum and the scrap value is estimated atbRM2,000. f. Two-thirds of the subscription revenue has been earned. g. Salaries expense that has not been included amounting to RM540. h. A utility bill of RM120 has just been received. Required: a) Prepare the adjusting entries and adjusted trial balance. b) Prepare the financial statements.
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