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The trial balance for Rosie Ltd which provides image and fashion consultancy services is shown below
The trial balance for Rosie Ltd which provides image and fashion consultancy services is shown below. Rosie Ltd Trial balance as at 30 June 2017 Credit (RM) Account Cash Trade receivables Supplies Fittings Trade payables Capital, Dogol Total Debit (RM) 10,200 2,640 2,520 9,600 6,840 18,120 24,960 24,960 The following is the business transactions in the month of July 2017: July 4 Received cash of RM1,560 from due accounts of the customers 11 Sent bill to a customer for a consultancy service worth RM4,200 15 Paid workers' salaries of RM1,440 18 Provided consultancy service customer who paid a deposit of RM720 in May 2017 20 Paid RM1,320 to trade payables 28 Danni took out cash of RM400 for his personal use 31 Paid utilities of RM840 Required: (a) Prepare the journal entries for the above transactions. (b) Prepare a general ledger by using the statement format (column). Record the opening balances for the accounts as at 1 July. Add the following accounts: drawings, services, revenue salaries, and utilities. (c) Post the journalised accounts in option (a) to the ledger accounts in (b). (d) Prepare the trial balance as on 31 July 2017 (e) Prepare the income statement and the statement of changes in equity for the month ended 31 July 2017 and the statement of financial position as at 31 July 2017 ST2.10 Atiati Supermarket started operations in May 2017. Its ledger accounts as at 30 June 2017 are as follows: Cash Land Buildings Fittings RM32,000 84,000 36,000 32,000
Expert Solution
Solution:
Journal entries:
Date Account title Debit Credit
July-4 Cash 1560
Accounts receivable 1560
July-11 Accounts receivable 4200
Service revenue 4200
July-15 Salaries expense 1440
Cash 1440
July-18 Accounts receivable 720
Service revenue 720
July-20 Trade payables 1320
Cash 1320
July-28 Drawings donol 400
Cash 400
July-31 Utilities expense 840
Cash 840
CASH
Date Explanation Debit (RM) Credit (RM) Balance (RM)
1 july Beginning 10200 10200
4 july Trade receivables 1560 11760
15 july Salaries expense 1440 10320
20 july Trade payables 1320 9000
28 july Drawing donol 400 8600
31 july Utilities expense 840 7760
Trade receivable
Date Explanation Debit (RM) Credit (RM) Balance (RM)
1 july Beginning 2640 2640
4 july Cash 1560 1080
11 july Service revenue 4200 5280
18 july Service revenue 720 6000
Supplies
Date Explanation Debit (RM) Credit (RM) Balance (RM)
1 july Beginning 2520 2520
Fittings
Date Explanation Debit (RM) Credit (RM) Balance (RM)
1 july Beginning 9600 9600
Trade payable
Date Explanation Debit (RM) Credit (RM) Balance (RM)
1 july Beginning 6840 6840
20 july Cash 1320 5520
Capital, dogol
Date Explanation Debit (RM) Credit (RM) Balance (RM)
1 july Beginning 18120 18120
Drawings, dogol
Date Explanation Debit (RM) Credit (RM) Balance (RM)
1 july Beginning 400 400
Services revenue
Date Explanation Debit (RM) Credit (RM) Balance (RM)
11 july Trade receivables 4200 4200
18 july Trade receivales 720 4920
Salaries expense
Date Explanation Debit (RM) Credit (RM) Balance (RM)
15 july Cash 1440 1440
Utilities expense
Date Explanation Debit (RM) Credit (RM) Balance (RM)
31 july Cash 840 840
ROSIE LTD
TRIAL BALANCE(JULY 31 2017) (In $)
Particular's Debit (RM) Credit (RM)
Cash 7760
Trade receivables 6000
Supplies 2520
Fittings 9600
Trade payables 5520
Capital dogol 18120
Drawings dogol 400
Service revenue 4920
Salaries expense 1440
Utilities expense 840
Total 28560 28560
ROSIE LTD
BALANCE SHEET AS OF JULY 31 2017
ASSETS Amount (RM)
Current assets:
Cash 7760
Trade receivables 6000
Supplies 2520
Fittings 9600
Total assets 25880
Liabilities, stock holder's equity:
Current liabilities
Trade payables 5520
Stock holders equity
Capital dogol 20360
Liabilities, stock holder's equity 25880
ROSIE LTD
INCOME STATEMENT (JULY 31 2017)
Particulars Amount (RM) Amount (RM)
REVENUE
Service revenue 4920
Total revenue (a) 4920
EXPENSES
Salaries expense 1440
Utilities expense 840
Total expense (b) 2280
Net income (a-b) 2640
ROSIE LTD
CHANGES IN OWNERS EQUITY (JULY 31 2017)
Capital dogol july 1 2017 18120
add: net income 2640
less: drawings , dogol 400
Capital, dogol july 31 2017 20360
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