Question

1. Prepare the journal entries, T accounts and Trial Balance
2. Prepare Income Statement and Balance Sheet

Johan Johari began professional practice as a system analyst on July 1, 2019. He plans to prepare a monthly financial statement. During the month of July, Johan Johari completed the transactions as follows:

July 1. Johan invested RM500,000 cash along with computer equipment that had a market value of RM120,000 two years ago but was now worth RM 100,000 only.

July 2. Paid RM15,000 cash for the rent of office space for the month.

July 4. Purchased RM12,000 of additional equipment on credit (due within 30 days).

July 8. Completed a work for a client and immediately collected the RM32,000 cash.

July 10. Completed work for a client and sent a bill for RM27,000 to be paid within 30 days.

July 12. Purchased additional equipment for RM8,000 in cash.

July 15. Paid an assistant RM6,200 cash as wages for 15 days.

July 18. Collected RM15,000 on the amount owed by the client.

July 25. Paid RM12,000 cash to settle the liability on the equipment purchased.

July 28. Owner withdrew RM500 cash for personal use.

July 30. Completed work for another client who paid only RM40,000 for 50% of the system design.

July 31. Paid salary of assistant RM700.

July 31. Received utility bill, RM1,800.

July 31. Received electricity bill RM 3,800.

Answer 1

1.

Date		Debit	Credit
July		Amount (RM)	Amount (RM)
1	Cash	5,00,000
	Computer	1,00,000
	Capital		6,00,000
2	Rent Expense	15,000
	Cash		15,000
4	Equipment	12,000
	Accounts Payable		12,000
8	Cash	32,000
	Service Revenue		32,000
10	Accounts Receivable	27,000
	Service Revenue		27,000
12	Equipment	8,000
	Cash		8,000
15	Wages Expense	6,200
	Cash		6,200
18	Cash	15,000
	Accounts Receivable		15,000
25	Accounts Payable	12,000
	Cash		12,000
28	Drawings	500
	Cash		500
30	Cash	40,000
	Accounts Receivable	40,000
	Service Revenue		80,000
	**Assumed that 50% still unpaid
31	Salary Expense	700
	Cash		700
31	Utility Expense	1,800
	Cash		1,800
31	Electricity Expense	3,800
	Cash		3,800

---

Cash
Date	Particular	Amount(RM)	Date	Particular	Amount(RM)
July			July
1	Capital	5,00,000	2	Rent Expense	15,000
8	Service Revenue	32,000	12	Equipment	8,000
18	Accounts Receivable	15,000	15	Wages Expense	6,200
30	Service Revenue	40,000	25	Accounts Payable	12,000
			28	Drawings	500
			31	Salary Expense	700
			31	Utility Expense	1,800
			31	Electricity Expense	3,800
			31	Balance	5,39,000
		5,87,000			5,87,000
Capital
Date	Particular	Amount(RM)	Date	Particular	Amount(RM)
July			July
			1	Cash	5,00,000
31	Balance	6,00,000	1	Computer	1,00,000
		6,00,000			6,00,000
Computer
Date	Particular	Amount(RM)	Date	Particular	Amount(RM)
July			July
1	Capital	1,00,000	31	Balance	1,00,000
		1,00,000			1,00,000
Rent Expense
Date	Particular	Amount(RM)	Date	Particular	Amount(RM)
July			July
2	Cash	15,000	31	Balance	15,000
		15,000			15,000
Equipment
Date	Particular	Amount(RM)	Date	Particular	Amount(RM)
July			July
4	Accounts Payable	12,000
12	Cash	8,000	31	Balance	20,000
		20,000			20,000
Accounts Receivable
Date	Particular	Amount(RM)	Date	Particular	Amount(RM)
July			July
10	Service Revenue	27,000	18	Cash	15,000
30	Service Revenue	40,000	31	Balance	52,000
		67,000			67,000
Accounts Payable
Date	Particular	Amount(RM)	Date	Particular	Amount(RM)
July			July
25	Cash	12,000	4	Equipment	12,000
		12,000			12,000

--

Trial Balance-31st July 2019
	Debit	Credit
Cash	5,39,000
Capital		6,00,000
Computer	1,00,000
Rent Expense	15,000
Equipment	20,000
Accounts Receivable	52,000
Accounts Payable		0
Service Revenue		139000
Wages Expense	6,200
Salary Expense	700
Utility Expense	1,800
Electricity Expense	3,800
Drawings	500
	7,39,000	7,39,000

---

Statement of Income for the Month ended July 31
Revenue	(RM)
Service Revenue	139000
Total income	139000
Expenses
Rent Expense	15000
Wages Expense	6200
Salary Expense	700
Utility Expense	1800
Electricity Expense	3800
Total Expenses	27500
Net Income	111500

--

Balance Sheet as at July 31
Assets	(RM)
Cash	539000
Accounts Receivable	52000
Total Current Asset	591000
Equipment	20000
Computer	100000
	120000
Total Assets	711000
Liabilities	(RM)
Accounts payable	0
Total Current Liabilities	0
Total Liabilities	0
Owners capital
Capital	600000
Net income	111500
Less: Drawings	-500
Total Capital	711000
Total Liabilities and Owners Capital	711000

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Hope you Understood.
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Thank you...