DFA 5058 REVISION EXERCISES (LECTURE 1-4)1

QUESTION 1
The following amounts summarize the financial position of Eve Photoprint on 31 January 2011.
Cash
Accounts Receivable
Supplies
Equipment
Accounts Payable
Adam, Capital

RM 5,000
2,500
1,500
6,000
5,200
9,800

During February 2011, Eve Photoprint completed these transactions:

(i) Collected RM1,800 of accounts receivable.
(ii) Paid RM3,200 cash on accounts payable.
(iii) Earned revenue of RM6,500 of which RM3,000 is collected in cash and the balance is due
in March.
(iv) Purchased additional equipment for RM2,000, paying RM500 in cash and the balance on
account.
(v) Paid salaries RM2,800, rent for February RM900 and utilities expenses RM550.
(vi) Withdrew RM600 in cash for houses kitchen cabinet.
Instructions
(a) Prepare a tabular analysis of the above transactions.

(12 marks)

(b)

Prepare the income statement for the month ended 28 February 2011.

(5 marks)

(c)

Prepare the owners equity statement for the month ended 28 February 2011.

(4 marks)

(d)

Prepare the balance sheet at 28 February 2011.

(8 marks)
[TOTAL 29 MARKS]

QUESTION 2
The trial balance for Renew Consultancy as of 31 October 2010 contained the following
accounts.
Debits
Credits
RM
RM
Cash
14,500
Notes Payable
18,000
Accounts Receivable
15,000
Accounts Payable
10,000
Supplies
4,700
Unearned Revenue
3,000
Prepaid Insurance
2,100
Kaylee, Capital
25,000
Equipment
45,000
Consulting Revenue
45,200
Salaries Expense
12,000
Roadshow Revenue
8,800
Advertising Expense
2,200
Rent Expense
10,300
Utilities Expense
4,200
RM 110,000
RM 110,000
TXF/DFA505/REVEX/5058/L1L4

DFA 5058 REVISION EXERCISES (LECTURE 1-4)2

Analysis reveals the following additional data:

(i) The RM4,700 balance in Supplies represents supplies purchased in January. At October
31, RM1,600 of supplies was on hand.
(ii) Insurance expires at the rate of RM350 per month.
(iii) Unearned consulting revenue of RM1,100 has been earned.
(iv)Consulting revenue earned but unbilled at October 31 totals RM3,500.
(v) Depreciation is RM2,000 per year.
Instructions
(a) Journalize the adjusting entries at 31 October 2010.
(b)

(5 marks)

Prepare an adjusted trial balance.

(20 marks)
[TOTAL 25 MARKS]

QUESTION 3
The adjusted account balances of Sihat Fitness at 31 August 2010 are as follows :
Accounts
Cash
Accounts Receivable
Supplies
Prepaid Insurance
Buildings
Acc. Depreciation - Buildings
Accounts Payable
Zachary, Capital
Zachary, Drawing

Balances
(RM)
21,000
16,000
3,000
7,000
280,000
120,000
19,000
180,000
15,000

Accounts
Service Revenue
Interest Revenue
Depreciation Expense
Insurance Expense
Salary Expense
Supplies Expense
Utilities Expense

Balances
(RM)
120,000
16,000
29,000
8,000
55,000
9,000
12,000

Instruction
Prepare the end of the period closing entries for Sihat Fitness.
[TOTAL 13 MARKS]

TXF/DFA505/REVEX/5058/L1L4

DFA 5058 REVISION EXERCISES (LECTURE 1-4)3

QUESTION 4
The trial balance of Techno Enterprise as at 31 December 2010, the end of its fiscal year is as
follows:
TECHNO ENTERPRISE
Trial Balance
31 December 2010
Debit (RM)
Cash
10,200
Supplies
5,500
Prepaid Insurance
3,600
Equipment
18,000
Accumulated Depreciation Equipment
Notes Payable
Accounts Payable
Mikhael, Capital
Mikhael, Drawing
3,500
Service Revenue
Utilities Expense
1,200
RM 42,000

Credit (RM)

5,000
5,000
4,900
20,000
7,100
RM 42,000

Other data
(i)
(ii)
(iii)
(iv)
(v)

A physical count of supplies indicated RM3,500 on hand at December 31.

The amount of insurance that expired in the month of December was RM300.
Depreciation on equipment for December was RM600.
Rent owed on the shop for the month of December was RM1,200 but will not be paid until
January 2011.
Paid creditors for supplies purchased, RM900.

Instruction
Enter the trial balance on a worksheet and complete the worksheet. Write each adjusting entry
by number.
[TOTAL 28 MARKS]

TXF/DFA505/REVEX/5058/L1L4

DFA 5058 REVISION EXERCISES (LECTURE 1-4)4

QUESTION 5
Laura Stiner started her own consulting firm, Stiner Consulting Sdn. Bhd., on May 1, 2009. The
following transactions occurred during the month of May.
May

1
2
9
15
17
23
26
29

Stiner invested RM 8,000 cash in the business.

Paid RM 800 for office rent for the month.
Received RM 3,000 cash for services provided.
Performed RM 3,300 of services on account.
Paid RM 3,000 for employee salaries.
Received a cash payment of RM 2,000 for services provided on account on May
15.
Borrowed RM 5,000 from the bank on a note payable.
Purchased office equipment for RM 2,400 on account.

Instructions
Part A
a)

Show the effects of the previous transactions on the accounting equation using the
following format.
ASSETS
LIABILITIES
STOCKHOLDERS
EQUITY

DATE

Cash

Account
Receivable

Office
Equipment

Notes
Payable

Account
Payable

Common
Stock

Retained
Earnings

Part B
a)

Journalize these transactions and post to the accounts.

b)

Show all the accounts (column type) after posting.

c)

Prepare the trial balance as at May 31,2009.

TXF/DFA505/REVEX/5058/L1L4

DFA 5058 REVISION EXERCISES (LECTURE 1-4)5

QUESTION 6
The balance of Abu Service as at 30th September 2010 is shown below:
Accounts
Cash
Accounts receivable
Prepaid rent
Supplies
Equipment
Accounts payable
Abu, capital
Abu, drawing
Services revenue

RM
3,500
3,400
1,200
3,300
32,600
3,600
36,000
2,700
7,100

Additional information at 30th September 2010:

a. Accrued service revenue, RM600.
b. Depreciation, RM150.
c. Accrued salary expense, RM500.
d. Prepaid rent expired, RM800.
e. Supplies used, RM1,600.
Instructions:
a) Enter the trial balance on a work sheet and complete the work sheet.
b) Prepare closing entry.
c) Prepare Post-closing Trial balance as at 30th September 2010.

TXF/DFA505/REVEX/5058/L1L4