Question

The following shows the unadjusted Trial Balance of Satyam Logistics Sdn Bhd during August 2018:

Satyam Logistics Sdn Bhd
Unadjusted Trial Balance for the month ended August 31, 2018
Account Title	Balance
	Debit(RM)	Credit(RM)
Service Revenue		820,000
Salaries Expenses	460,000
Delivery Expenses	230,000
Utility Expenses	50,000
Bank	52,000
Debtors (Acc Receivable)	79,000
Office Supplies	12,000
Prepaid Insurance	36,000
Furniture	80,000
Accumulated Depreciation—Delivery Van		16,000
Creditors (Acc Payable)		56,000
Unearned Revenue		12,000
Satyam, Capital		100,000
Satyam, Withdrawals	5,000
Total	1,004,000	1,004,000

Additional information:

Depreciation was recorded on the Furniture using the straight-line method. Assume a useful life of five years with no salvage value.

Rent paid in advance for the month has expired. RM36,000 rent was paid in advance for four months period starting January 1.

Accrued Salaries Expenses, RM10,000.

Accrued Service Revenue, RM5,000.

Office Supplies on hand, RM6,000.

Required:

Prepare an Adjusted Trial Balance for Satyam Logistics Sdn Bhd’s as at August 31, 2018.

Prepare Satyam Logistics Sdn Bhd’s Statement of Comprehensive Income (Income Statement) and Statement of Owner’s Equity for the month ended August 31, 2018.                                                              

Prepare Satyam Logistics Sdn Bhd’s Statement of Financial Position (Balance Sheet) on August 31, 2018.                                       

Answer 1

Note : (1) In unadjusted trial balance $ 36,000 is associated with prepaid insurance but in additional information it was considered as prepaid rent. The nature of both of the  accounts are same but the meaning is different . In this solution it has been considered as prepaid rent only .

(2) In trial balance furniture was there and along with furniture , accumulated depreciation - delivery van was there too. But in solution it has been considered as accumulated depreciation - Furniture.

A)  

Adjusted Trial balance

As at August 31 ,2018

Accounts title	Debit(RM)	Credit(RM)
Service revenue		825,000
Salaries expenses	470,000
Delivery expenses	230,000
Utilities expenses	50,000
Bank	52,000
Debtors (Account receivable )	84,000
Office Supplies	6,000
Furniture	80,000
Accumulated depreciation - Furniture		32,000
Creditors (Accounts payable )		56,000
Unearned revenue		12,000
Satyam, Capital		100,000
Satyam , Withdrawal	5,000
Rent expense	36,000
Depreciation expense - Furniture [ 80,000/5]	16,000
Accrued salaries expenses		10,000
Supplies expense	6,000
Total	1,035,000	1,035,000

B)

Income statement

For the year ended August 31 , 2018

	$	$
Sales revenue		825,000
Operating expenses :
Salaries expenses	470,000
Delivery expenses	230,000
Utilities expenses	50,000
Rent expenses	36,000
Depreciation expenses - Furniture	16,000
Supplies expenses	6,000
Less: Total operating expenses		808,000
Net income		17,000

Statement of owner's equity

For the year ended August 31 , 2018

	$
Satyam, Capital ( opening )	100,000
Less: Satyam , Withdrawals	5,000
Balance of equity before profit	95,000
Add: Net income	17,000
Satyam, Capital ( Closing)	112,000

C)

Balance Sheet

As on August 31 , 2018

Assets :
current assets :
Bank		52,000
Debtors ( Accounts receivable)		84,000
Office Supplies		6,000
Total current assets		142,000
Non current assets :
Furniture	80,000
Accumulated depreciation - Furniture	(32,000)
Total non current assets		48,000
Total assets		190,000
Liabilities and shareholder's equity :
Current liabilities :
Creditors (Accounts payable)		56,000
Unearned revenue		12,000
Accrued salaries expenses		10,000
Total current liabilities		78,000
Total non current liabilities		Nil
Total liabilities		78,000
Shareholder's equity
Satyam , Capital (Closing balance)		112,000
Total liabilities and shareholder's equity		190,000

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