BKAL1013 A191 TUTORIAL 2

TUTORIAL 2 (Topic 3 & 4)

DUE DATE: 13 OCTOBER 2019

Topic 3 (Recording Process)

PART A: 20 MULTIPLE CHOICE QUESTIONS

1. Mega Makmur Berhad purchased equipment for RM3,500. The company paid RM1,500
in cash as downpayment and to pay the balance in five-month installments. The company
debited RM3,500 in Equipment account and
A. credited another asset account for RM1,500.
B. credited a liability account for RM2,000.
C. Debited another asset account for RM1,500; and a liability account for RM2,000.
D. Credited another asset account for RM1,500; and a liability account for
RM2,000.

2. The company provided services to a client and billed him for RM3,000 and no payment
have been received. The results of this event,
I. assets remained unchanged.
II. liabilities remained unchanged .
III. assets increased by RM3,000.
IV. Owner’s equity increased by RM3,000.

A. III and IV.

B. II, III and IV.
C. I, II and IV.
D. I, II, III and IV.

3. Supplies account had a balance of RM370 on 1 March 20182019. During the month,
total supplies purchased and used were RM690 and RM550 respectively. The balance in
the Supplies account at the end of the month would be:
A. RM1,060, debit.
B. RM550, credit.
C. RM510, debit.
D. RM230, credit.

4. Which of the following rules is INCORRECT?

A. Credits increase the capital account.
B. Debits decrease the expense accounts.
C. Credits increase revenue accounts.
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D. Debits decrease liability accounts.

5. Adjusting entries are required when

A. expenses are recorded in the period in which they are incurred.
B. revenues are recorded in the period in which they are earned.
C. the company's profits are below the budget.
D. some costs expire with the passage of time and have not yet been recorded.

6. The receipt of cash from customers in payment of their accounts would be recorded by:
A. a debit to cash and a credit to accounts payable
B. a debit to cash and a credit to accounts receivable
C. a debit to accounts payable and a credit to cash
D. a debit to accounts receivable and a credit to cash

7. The owner withdraws cash from the business for personal use leads to:
A. no effect on total assets
B. an increase in both total assets and total equities
C. a decrease in both total assets and total equities
D. an increase in total assets and a decrease in total equities

8. Which of the following statements is FALSE?

A. Entries that decrease asset accounts, or derease liability accounts are posted as
credits
B. The left side of a T-account is the debit side
C. Entries that increase asset accounts, or decrease liability accounts are posted as debits
D. The right side of a T-account is the credit side

9. Mary Sue opens a business called Sue Couture by bringing in RM70,000 cash and
RM130,000 value of a car into the business. The journal entry would be recorded as:
A. A debit to cash RM70,000 and credit to both vehicle RM130,000 and owner’s equity
RM200,000
B. A debit to both cash RM70,000 and vehicles RM130,000 and credit to owner’s
equity RM200,000
C. A debit to cash RM170,000 and credit to both vehicles RM30,000 and owner’s equity
RM200,000
D. A debit to both cash RM170,000 and land RM130,000 and credit to owner’s equity
RM300,000

10. Which of the following event is NOT considered as a business transaction?

A. Received utility bills
B. Received cash for previous month sales
C. Placed an order for three units of machineries
D. Paid cash for current month rent and the following three months
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Topic 4 (Completing the Accounting Cycle)

11. On 1 March 20182019, the company paid RM2,400 for a one-year insurance coverage.
The entire RM2,400 was charged to Insurance Expense on the same day. The adjusting
entries on 30 June 2018 2019 would be

A. Debit Insurance Expense RM800, Credit Prepaid Insurance RM800

B. Debit Prepaid Insurance RM800, Credit Insurance Expense RM800
C. Debit Insurance Expense RM1,600, Credit Prepaid Insurance RM1,600
D. Debit Prepaid Insurance RM1,600, Credit Insurance Expense RM1,600

12. Sally Enterprise paid RM4,500 for three month rental in advance on 1 August 20182019.
After adjusting entries are made, what is the balance of Prepaid Rent on 30 September
2018?
A. RM4,500
B. RM3,000
C. RM1,500
D. Nil

13. The machinery account showed a balance record of RM45,750 and accumulated
depreciation of RM18,300. What is the cost book value of the machineries?
A. RM9,150
B. RM18,300
C. RM27,450
D. RM45,750

Use the following information from the Income Statement for the month of September 2018
2019 of Wonder Enterprise to answer Questions 9 and 10:

RM RM
Revenue 7,000
Less: Expenses:
Wages Expense 2,000
Advertising Expense 200
Rent Expense 1,000
Supplies Expense 300
Insurance Expense 100
Total Expenses 3,600
Net Income 3,400

14. The closing entries for revenue accounts include:

A. a credit to Income Summary for RM7,000
B. a credit to Revenue account for RM7,000
C. a debit to Income Summary for RM7,000
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D. a debit to Revenue account for RM3,400

15. The closing entries for expenses accounts include:

A. a credit to Income Summary for RM3,6400
B. a credit to Rent Expense for RM1,000
C. a debit to Wages Expense for RM2,000
D. a debit to Income Summary for RM3,400600

16. Which of the following statements is INCORRECT concerning the adjusted trial balance?
A. An adjusted trial balance proves the equality of the total debit balances and the total
credit balances in the ledger after all adjustments are made
B. The adjusted trial balance provides the primary basis for the preparation of financial
statements
C. The adjusted trial balance lists the account balances segregated by assets and
liabilities
D. The adjusted trial balance is prepared after the adjusting entries have been journalized
and posted

17. The adjustment entry for salaries earned by employees but not yet paid is:
A. Dr. Salary Payable; Cr. Salary Expense
B. Dr. Salary Expense; Cr. Cash
C. Dr. Salary Expense; Cr. Salary Payable
D. Dr. Salary Expense; Cr. Accounts Receivable

18. The list that contains the titles and balances of yet to be updated accounts from the ledger
on a given date is called:
A. the unadjusted trial balance
B. a comprehensive income statement
C. a statement of financial position
D. the adjusted trial balance

19. The year-end adjustments are required to some accounts due to:
I. Some revenues and expenses may be unrecorded
II. Some revenues are earned with the passage of time
III. All expenses are incurred with the payment of cash
IV. Some expenses such as use of supplies are not recorded daily

A. I and II
B. I and III
C. All of the above
D. None of the above
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20. Which of the following statements about the accrual basis and cash basis of accounting are
TRUE?
A. Accrual basis records revenue when services are performed. Cash basis records
revenue when cash is received
B. Accrual basis records expenses when incurred. Cash basis records expenses when
cash is paid
C. Accrual basis is required by generally accepted accounting principles
D. All of the above are true

PART B :STRUCTURED QUESTIONS

QUESTION ONE

On June, 2019, Rusman established a management consultancy firm, RG CONSULTANCY

SDN BHD. During the month, Rusman carried out the following transactions:

June 1 Rusman deposited RM25,000 into bank account of RG CONSULTANCY.

4 Paid rent expenses for office premises for the period of one month ending
30th June, RM 2,400.
8 Purchased computer systems on account RM 7,500.
9 Bought car for office use RM 12,000, paying RM 8,000 cash while the
giving Note payable for the remainder.
11 Cash received for job completed RM9,500.
15 Paid cash for supplies RM 1,350.
17 Sent invoice to customer for job completed on account, RM6,750.
19 Withdrew cash RM500 to pay for his child school fees.
21 Annual insurance premiums for property and equipment paid amounted to
RM 1,100.
25 Utilities expense paid by cash RM 1,050.
26 Received invoices for car expenses, to be paid in the following month,
RM750.
27 Received cash from customers for job completed on account, RM4,750.
29 Paid salaries to assistants, RM3,100.
30 Paid cash RM 650 as telephone expenses.
Settled part of the amount owed for the purchased of computer systems,
RM 5,000.

REQUIRED:
a) Journalize the transactions for June, 2019 (Explanation is not required).

June 1 dt Cash 25,000

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cr Owner’s Equity 25,000

June 4 dt Rent Expense 2,400
Cr Cash 2,400
June 8 dt Computer 7,500
Cr Accounts Payable 7,500
June 9 dt Car 12,000
Cr Cash 8,000
Cr Note Payable 4,000
June 11 dt Cash 9,500
Cr Revenue 9,500
June 15 Dt Supplies 1,350
Cr Cash 1,350
June 17 Dt Accounts Receivable 6,750
Cr Revenue 6,750
June 19 Dt Withdrawing Acc 500
Cr Cash 500
June 21 Dt Prepaid Insurance 1,100
Cr Cash 1,100
June 25 Dt Utilities Expense 1,050
Cr Cash 1,050
June 26 Dt Cash 750
Cr Revenue 750
June 27 Dt Cash 4,750
Cr Revenue 4,750
June 29 Dt Salaries Expense 3,100
3,100
June 30 Dt Telephone Expense 650
Cr Cash 650
June 30 Dr Accounts Payable 5,000
Cr Cash 5,000
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b) Post the Journal entries to the ledge

Cash Accounts Owner Equity
OE 25,000 Rent Expense 2,400 Cash 25,000
Revenue 9,500 Car 8,000
Acc Reciev Supplies 1,350
4,750Revenue
750
Acc Reciev 4,750 Withdrawal 500
Prepaid Ins 1,100
Utilities expense 1,050
Salaries Expense 3,100
Tel Expense 650
Acc Payable 5,000
Balance cf
16,850100
40,00039,250 40,00039,250 25,000 25,000

Rent Expense Computer

Cash 2,400 Acc Payable 7,500

Acc Payable Car

Cash 5,000 Computer 7,500 Cash 8,000
Balance cf 3,250 Car Expense 750 Notes Payable 4,000
8,250 8,250 12,000 12,000

Notes Payable Revenue

Car 4,000 Cash 9,500
Acc Recivable 6,750
16,250 16,250Cash
750
Cash 4,750
21,750 21,750

Supplies Acc Receivable

Cash 1,350 Revenue 6,750 Cash 4,750
Balance 2,000
6,750 6,750
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Acc Withdrawal Prepaid Insurance

Cash 500 Cash 1,100

Car Expense Acc Telephone Expense

Acc Payable 750 Cash 650

Utilities Expense Salaries Expense

Cash 1,050 Cash 3,100

c) Prepare an unadjusted trial balance for RG CONSULT SDN BHD as of June 30, 2019.

Unadjusted Trial Balance

Debit Credit
Cash 16,850100 Owner Equity 25,000
Rent Expense 2,400 Revenue 21,75016,250
Computer 7,500 Notes Payable 4,000
Car 12,000 Acc Payable 3,250
Supplies 1,350
Acc Receiveable 2,000
Withdrawal 500
Prepaid Insurance 1,100
Car Expense 750
Uitilities Expense 1,050
Saalaries Expense 3,100
Telephone expense 650
48,50049,250 54,00048,500
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QUESTION TWO
Below is the adjusted trial balance for E-Key-Yaa Enterprise, owned by Dandy.

E-Key_Yaa Enterprise
Adjusted Trial Balance
31 December 20178
Debit Credit
RM RM
Bank 35,000
Motor Vehicles 22,000
Cash 12,000
Office Supplies 2,000
Accounts Receivable 4,000
Danial, Capital 51,000
Fees Revenue 35,000
Accounts Payable 8,000
Rental Expenses 2,000
Utility Expenses 5,000
Salary Expenses 8,000
Prepaid Insurance 5,000
Salary Payable 3,000
Danial, Drawing 2,000  

97,000 97,000

REQUIRED:

(a) Prepare the Statement of Profit or Loss and Other Comprehensive Income of E-Key-Yaa
Enterprise for the month ended 31 December 2018.

Statement of Profit or Loss and Other Comprehensive Income for the month ended 31
December 2018
Fees Revenue 35,000
Expenses
Rental Expense 2,000
Utility Expense 5,000
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Salary Expense 8,000 15,000

Profit 20,000

(b) Prepare the Statement of Changes in Owner’s Equity of E-Key-Yaa Enterprise for the month
ended 31 December 2018.

Statement of Changes in Owner’s Equity of E-Key-Yaa Enterprise for the month ended 31
December 2018.

Open Balance 51,000

+ Profit 20,000
71,000
- Withdrawal 2,000
Decrease in Owner Equity 69,000

(c) Prepare the Statement of Financial Position of E-Key-Yaa Enterprise as at 31 December 20178.

Statement of Financial Position of E-Key-Yaa Enterprise as at 31 December 2018.

Assets
Assets Liabilities
Current Assets: Current Liabilities:
Bank 35,000 Accounts Payable 8,000
Cash 12,000 Salary payable 3,000
Accounts Receivables 4,000 Total liabilities 11,000
Office Supplies 2,000
Prepaid Insurance 5,000 Owner’s Equity
Total current assets Daniel, Capital 69,000
58,000

Fixed Assets
Motor
22,000
Total Assets 80,000 Total Liability and OE 80,000
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END OF QUESTIONS
BKAL1013 A191 TUTORIAL 2

TUTORIAL 2 ANSWER SHEET

DUE DATE: 13 October 2019

Group: _______

Matric No: __________ Name: __________________________________________

PART A: 20 MULTIPLE CHOICE QUESTIONS

1. D 11. D
2. A 12. C
3. C 13. C
4. B 14. A
5. D 15. B
6. B 16. C
7. C 17. C
8. A 18. A
9. B 19. C
10. C 20. D
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PART B :STRUCTURED QUESTION