Question

Syarikat Ali Sdn. Bhd. owned by Ali, began operations in May and completed the following transactions during that first month of operations.

May 1 Ali invested RM90,000 cash in the company for ordinary shares. 2 The company purchased RM25,000 in office equipment. It paid RM10,000 in cash and signed a note payable promising to pay the RM15,000 over the next three years.

2 The company rented office space and paid RM3,000 for the May rent 6 The company installed a new roof for a customer and immediately collected RM5,000.

7 The company paid a supplier RM2,000 for roofing materials used on the May 6 job.

8 The company purchased a RM2,500 copy machine for office use on credit.

9 The company completed work for additional customers on credit in the amount of RM16,000.

15 The company paid its employee salaries RM2,300 for the first half of the month.

17 The company installed a new roof for a customer and immediately collected RM2,400.

20 The company received RM10,000 in payments from the customers billed on May 9.

28 The company paid RM1,500 on the copy machine purchased on May 8. It will pay the remaining balance in June.

31 The company paid its employee salaries RM2,400 for the second half of the month.

31 The company paid a supplier RM5,300 for roofing materials used on the remaining jobs completed during May.

31 The company paid RM450 for this month’s utility bill.

Required:

a) Record the transactions of the business in a journal. Omits an explanation for each entry.

b) After analyzing these transactions, what is the ending cash balance? Use a T account to support your answer.

c) Prepare a trial balance at the end of the month.

Answer 1

a)

Date	Particulars	Debit	Credit
May-01	cash	90000
	Common Shares		90000
May-01	Equipment	25000
	Cash		10000
	Notes Payable		15000
May-02	Rent	3000
	Cash		3000
May-02	Cash	5000
	Roofing Revenue		5000
May-07	Supplier	2000
	Cash		2000
May-08	Copy Machine	2500
	Accounts Payable		2500
May-09	Accounts Recievable	16000
	Roofing revenue		16000
May-15	Salaries	2300
	Cash		2300
May-17	Cash	2400
	Roofing Revenue		2400
May-20	Cash	10000
	Accounts Recievable		10000
May-28	Accounts Payable	1500
	Cash		1500
May-31	Salaries	2400
	Cash		2400
May-31	Supplier	5300
	cash		5300
May-31	Utilities	450
	Cash		450

b)

CASH
DATE	PARTICULARS	DEBIT	Date	PARTICULARS	CREDIT
May-01	Common Shares	90000	May-01	equipment	10000
May-02	Roofing Rvenue	5000	May-02	rent	3000
May-17	Roofing Rvenue	2400	May-07	Supplier	2000
May-20	Accounts Recievable	10000	May-15	Salaries	2300
			May-28	Accounts Payable	1500
			May-31	Salaries	2400
			May-31	Supplier	5300
			May-31	Utilities	450
			May-31	Closing Balance	80450
		107400			107400

c)

Trial Balance
	Particulars	Debit	Credit
	Cash	80450
	Equipment	25000
	Notes payable		15000
	Rent	3000
	Roofing Revenue		23400
	Copying Machine	2500
	Accounts Payable		1000
	Accounts Recievable	6000
	salaries	4700
	Utilities	450
	Supplier	7300
	Common Shares		90000
		129400	129400