Question

Question 6 The trial balance columns of the work sheet for Tang Cable Service at 31 May 2018 are as follow Tang Cable Service Trial Balance 31 May 2018 Debit (RM) Credit 6,200 2,000 500 15,300 j Cash Accounts Receivable Supplies Office Furniture Accumulated Depreciation - Furniture Accounts Payable Unearned Revenue Tang, Capital Tang, Drawing Service Revenue Salaries Expense Miscellaneous Expense 1,700 5,400 500 12,000 600 5,900 700 200 RM 25,500 RM 25,500 Other data: 1. 2. 3. 4. Supplies on hand at 31 May are RM300 Unearned revenue amounted to RM150 was earned on May 31 Depreciation for May is RM200 Accrued rent expenses but unpaid is RM350 Instructions a) Enter the trial balance on a work sheet and complete the work sheet. [ Hint: Net Income RM4400 b) Prepare an statement of Profit or Loss, owner's equity statement for the month of May and a classified statement of Financial Position at May 31. Tang did not make any additional investments in the business in May c) Jounalize the adjusting entries from the adjustments columns of the work sheet. d) Prepare the closing entries in the journal.

Answer 1

Adjusted Trail Balance Accounts Cash Accounts receivable Supplies Supplies Office Furniture Accmulated Debit Credit Accounts Title 1 Supplies Expenses Debit Credit 200 6200 2000 300 200 15300 Supplies 200 2 Unearned revenue 350 nses Service Revenue 350 ciation -Furniture 1900 reciation 200 200 ciation ses nses Accmulated Dep reciation Accounts Payable Unearmed Revenue Tang.capital Tang Drawing Service Revenue Salaries expenses Rent Expenses Rent Payable Misc 200 5400 350 12000 4 Rent 350 nses Rent Payable 350 600 6050 700 350 350 200 nses RM26.050RM26,050

Balance Sheet Income Statement Service Revenue Less Supplies Salaries e Rent Expenses 6050 Amount Amount Liabilities & Equity Amount Amount Assets Current Liabilities Accounts Payable Unearned Revenue Rent Payable Current Assets Cash Accounts receivable Supplies Total Current Assets Office Furniture Less: Accumulated 5400 350 350 200 700 350 200 200 4400 6200 2000 300 ses ises 8500 Total Current Liabilities 6100 reciation ises 12000 600 4400 Misc Net Income 15300 1900 Tang Capital nses 13400 Less: Drawin 15800 RM21.900 Add:Net Income Total RM21,900

Closing Entries 1650 a. Income Statement 200 700 350 Supplies Expenses Salaries expenses Rent Expenses Depreciation Expenses Misc.Expenses 200 200 b. Service Revenue 6050 Income Statement 6050