Professional Documents
Culture Documents
a) General Journal
b) Income statement
c) Net income
QUESTION 2
a) Journal Entries
Journal Entries
Date Account Titles and Explanation Debit Credit
1 July Cash RM25,00
Rose Marry, Capital 0 RM 25,000
(invested cash)
3 July Equipment 15,000
Account payable 15,000
(purchased equipment on account)
5 July Supplies 3,200
Cash 3,200
(purchased supplies for cash)
8 July Insurance expense 10,000
Cash 10,000
(paid insurance premiums)
10 July Cash 18,000
Service revenue 18,000
(received cash for services completed)
12 July Account payable 5,350
Cash 5,350
(paid creditors on account)
18 July Account receivable 22,000
Service revenue 22,000
(recorded service completed on account)
20 July Utilities expense 2,240
Miscellaneous expense 1,100
Cash 3,340
(paid utilities expense and miscellaneous expense)
23 July Rent expense 3,000
Cash 3,000
(paid rent for the month)
24 July Account receivable 9,800
Unearned service revenue 9,800
(received cash from customers on account)
25 July Wages expense 5,000
Cash 5,000
(paid wages)
30 July Rose Marry, Withdrawals 3,000
Cash 3,000
(withdrew for personal use)
31 July Supplies expense 1,200
Supplies 1,200
(determined the cost of supplies used)
Cash NO 101
Date Explanation Debit Credit Balance
Debit Credit
1 July Invested cash 25,000 25,000
5 Purchased supplies for cash 3,200 21,800
8 Paid insurance premium 10,000 11,800
10 Received cash for services
completed 18,000 29,800
12 Paid creditors on account 5,350 24,450
20 Paid utilities expense and
miscellaneous expense 3,340 21,110
23 Paid rent for the month 3,000 18,110
25 Paid wages 5,000 13,110
30 Withdrew for personal use 3,000 10,110
Account receivable NO 106
Date Explanation Debit Credit Balance
Debit Credit
18 Recorded service completed on 22,000 22,000
account
24 Received cash from customers on 9,800 31,800
account
Supplies NO 126
Date Explanation Debit Credit Balance
Debit Credit
5 Purchased supplies for cash 3,200
31 Determined the cost of supplies
used 1,200 2,000
Equipment NO 167
Date Explanation Debit Credit Balance
Debit Credit
3 Purchased equipment on account 15,000 15,000
Miscellaneous expense
Date Explanation Debit Credit Balance
Debit Credit
20 paid miscellaneous expense 1,100 1,100
Rose Designs
Unadjusted Trial Balance
July 31, 2021
Debit Credit
Cash 10,110
Account receivable 31,800
Supplies 2,000
Equipment 15,000
Account payable 9,650
Unearned service revenue 9,800
Rose Marry, Capital 25,000
Rose Marry, Withdrawals 3,000
Service revenue 40,000
Wages expense 5,000
Insurance expense 10,000
Rent expense 3,000
Supplies expense 1,200
Utilities expense 2,240
Miscellaneous expense 1,100
Totals RM 84,450 RM 84,450
QUESTION 3
a) Adjusting entries
General Journal
No Account Titles and Explanation Debit (RM) Credit (RM)
1 Supplies expense 570
Supplies 570
(1,050 – 480)
2 Depreciation expense 800
Accumulated depreciation – equipment 800
3 Interest expense 300
Accrued interest payable 300
4 Insurance expense 600
Prepaid expense 600
(200 x 3)
5 Account receivable 1,030
Service revenue 1,030
b) Worksheet
Adam Enterprise
Trial Balance
For the quarter ended 31 March, 2021
Unadjusted Adjustments Adjusted Trial
Trial Balance Balance
Account Title Debit Credit Debit Credit Debit Credit
Cash 11,400 11,400
Account Receivable 5,620 1,030 6,650
Supplies 1,050 570 480
Prepaid Insurance 2,400 600 1,800
Equipment 30,000 30,000
Notes Payable 10,000 10,000
Accumulated Depreciation 0 800 800
- Equipment
Account Payable 12,350 12,350
Accrued Interest Payable 0 300 300
Adam’s, Capital 20,000 20,000
Adam’s, Drawings 600 600
Service Revenue 13,620 1,030 14,650
Depreciation Expense 0 800 800
Supplies Expense 0 570 570
Interest Expense 0 300 300
Insurance Expense 0 600 600
Salaries and Wages Expense 2,200 2,200
Travel Expense 1,300 1,300
Rent Expense 1,200 1,200
Miscellaneous Expense 200 200
TOTAL (RM) 55,970 55,970 3,300 3,300 58,100 58,100