QUESTION 1

M&N MERCHANDISING SDN BHD AT YEAR 31 DECEMBER 2009 TITLE AND EXPLANATION SALES REVENUE SALES LESS:

660000 SALES DISCOUNT SALES RETURN AND ALLOWANCES 8000 30000 38000 622000 486000 136000

NET SALES COST OF GOODS SOLDS GROSS PROFIT OPERATING EXPENSES SELLING EXPENSES STORE SALARIES EXPENSES ADVERTISING EXPENSES DEPRECIATION EXPENSES FREIGHT OUT TOTAL SELLING EXPENSES ADMINISTRATIVE EXPENSES UTILITIES EXPENSE TOTAL OPERATING EXPENSES INCOME FROM OPERATION OTHER REVENUES AND GAINS INTEREST REVENUE OTHER EXPENSES AND LOSS INTEREST EXPENSE NET INCOME

56000 25000 8000 3000 92000

38000 130000 6000

40000

28000 12000 18000

QUESTION 2 NO i A)ADJUSTING ENTRIES TITLE AND EXPLANATION SSH HSS SDN BHD SUSPENSE ACCOUNT TELEPHONE SUSPENSE ACCOUNT SALES REPAIR MACHINERY SUSPENSE ACCOUNT RENT RECEIVED ISE10 COMPANY PURCHASE DR 560 560 100 100 3000 3000 410 410 2600 2600 875 875 7545 B) SUSPENSE ACCOUNT DR TELEPHONE 100 BAL C/F SALES 3000 CASH RENT RECEIVED 2600 7545 CR

ii

iii

iv

vi

CR 5700

5700 C) STATEMENT OF CORRECTED PROFIT FOR THE YEAR ENDED AT 31 DECEMBER 2010 NET PROFIT PER FINANCIAL STATEMENT ADD:SALES UNDERCAST TELEPHONE CHARGE OVERCAST RENT RECEIVED OMITTED

5700

48460 3000 100 2600 5700 54160

LESS:MACHINE REPAIR UNDERSTATED PURCHASE OMITTED CORRECTED NET PROFIT PER YEAR

410 875 1285 52875

QUESTION 3 NO i A)ADJUSTING ENTRIES TITLE AND EXPLANATION SUPPLIES EXPENSES SUPPLIES DEPRECIATION EXPENSES ACCUMULATED DEPRECIATION UNEARNED REVENUE ACCRUED REVENUE SALARIES EXPENSES SALARY PAYABLE DR 240 240 200 200 130 130 350 920 B)INCOME STATEMENT SERVICE REVENUE UNEARNED REVENUE SERVICE REVENUE OPERATING EXPENSES DEPRECIATION EXPENSES SUPPLIES EXPENSES SALARIES EXPENSES MISC EXPENSES NET INCOME 350 920 CR

ii

iii

iv

130 3500 3630 200 940 350 300 1790 1840

B)RETAINED EARNINGS RETAINED EARNINGS BEGINNING ADD: NET INCOME LESS: DIVIDENDS RETAINED EARNINGS ( ENDING)

0 1840 600 1240

B)BALANCE SHEET AS AT 31 MARCH 2010 CURRENT ASSET CASH ACCOUNT RECEIVABLE SUPPLIES TOTAL PROPERTY,PLANT AND EQUIPMENT EQUIPMENT LESS: ACC DEPRECIATION TOTAL TOTAL ASSETS: CURRENT LIABILITIES UNEARNED REVENUE ACCOUNT PAYABLE SALARY PAYABLE TOTAL STOCKHOLDERS EQUITY COMMON STOCK RETAINED EARNINGS TOTAL TOTAL S/H EQUITY AND LIABILTY:

2500 1800 860 5160

6000 900 5100 10260 170 1500 350 2020

7000 1240 8240 10260

C) CLOSING ENTRIES DATE CLOSING ENTRIES AS AT 31 MARCH 2010 MARCH 31 SERVICE REVENUE INCOME SUMMARY 31 INCOME SUMMARY SALARIES EXPENSES SUPPLIES EXPENSES MISC EXPENSES 31 INCOME SUMMARY RETAINED EARNINGS 31 RETAINED EARNINGS DIVIDENDS

REF

DR

CR

3630 3630 1590 940 350 300 1240 1240 600 600