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I got problem with my adjusting trial balance, and the transactions. and there is my answer, if it wrong please correct my answer. My ledger is attached above
Here is the questions:
On October 1, 2021, Najjmi Kutilang launched a computer services company called NAJJ Computer., which provides consulting services, computer system installations and program development. Kutilang adopts the calendar year for reporting purposes and expects to prepare the company’s first set of financial statements on December 31, 2021. NAJJ’s initial chart of accounts follows:
The followings are transactions for the NAJJ Computer Sdn. Bhd.:
The following additional facts are collected for use in making adjusting entries prior to preparing financial statements for the company’s first three months.
Required (PART 1):
This is my answer, if it wrong please correct my answer
1. general Journal
2. Unadjusted Trial Balance
3. Adjusting Entries
4. Adjusted trial balance
Here is the questions:
On October 1, 2021, Najjmi Kutilang launched a computer services company called NAJJ Computer., which provides consulting services, computer system installations and program development. Kutilang adopts the calendar year for reporting purposes and expects to prepare the company’s first set of financial statements on December 31, 2021. NAJJ’s initial chart of accounts follows:
No. | Account Title | No. | Account Title |
101 | Cash | 302 | N. Kutilang, Withdrawals |
106 | Account Receivable | 403 | Computer Service Revenue |
126 | Computer Supplies | 612 | Depreciation Expense - Office equipment |
128 | Prepaid Insurance | 613 | Depreciation Expense - Computer equipment |
131 | Prepaid Rent | 623 | Wages Expenses |
163 | Office Equipment | 625 | Salaries Expense |
164 | Accumulated Depreciation - Office equipment | 637 | Insurance Expense |
167 | Computer Equipment | 640 | Rent Expense |
168 | Accumulated Depreciation- Computer equipment | 652 | Computer supplies expense |
201 | Account Payable | 655 | Advertising Expenses |
210 | Wages Payable | 676 | Mileage Expenses |
232 | Unearned Service Revenue | 677 | Miscellaneous Expenses |
301 | N. Kutilang, Capital | 684 | Repair Expenses- Computer |
The followings are transactions for the NAJJ Computer Sdn. Bhd.:
Oct. | 1 | Najjmi Kutilang invested RM55,000 cash, a RM20,000 computer equipment and RM8,000 of office equipment in exchange for N. Kutilang’s capital. |
1 | Najjmi Kutilang hired Jasmine Jenkin as a clerk with salary of RM750 per month. | |
2 | NAJJ paid RM4,400 cash for four months’ rent. | |
3 | NAJJ purchased RM1,420 of computer supplies on credit from Harris Office Products. | |
5 | NAJJ paid RM2,400 cash for one year’s premium on a property and liability insurance policy. | |
6 | NAJJ billed Easy Leasing RM6,200 for services performed in installing a new Web Server. | |
8 | NAJJ paid RM1,420 cash for the computer supplies purchased from Harris Office Products on October 3. | |
10 | NAJJ hired Lyn Addie as a part time technician for RM50 per day, as needed. | |
12 | NAJJ billed Easy Leasing another RM1,400 for services performed. | |
15 | NAJJ received RM4,800 cash from Easy Leasing as partial payment on its account. | |
17 | NAJJ paid RM805 cash to repair computer equipment that was damaged when moving it. | |
20 | NAJJ paid RM1,940 cash for an advertisement in Padang News. | |
22 | NAJJ received RM1,400 cash from Easy leasing on its account. | |
28 | NAJJ billed IFM Company RM5,208 for service performed. | |
31 | NAJJ paid Jasmine’ salary for October 2021. | |
31 | NAJJ paid RM875 cash for Lyn Addie wages for seven days work. | |
31 | Najjmi Kutilang withdrew RM3,600 cash from the company for personal use. | |
Nov | 1 | NAJJ reimbursed Najjmi Kutilang in cash for business automobile mileage allowance (Najjmi Kutilang logged 1,000 km at RM0.32 per km). |
2 | NAJJ received RM4,633 cash from Liu Corporation for computer services performed. | |
5 | NAJJ purchased computer supplies for RM1,125 cash from Harris Office Products. | |
8 | NAJJ billed Gomez Enterprise RM5,668 for service performed. | |
13 | NAJJ received notification from Alex’s Engineering Enterprise that NAJJ Computer Sdn. Bhd. bid of RM3,950 for an upcoming project is accepted. | |
18 | NAJJ received RM2,208 cash from IFM Company as partial payment of the October 28 bil. | |
22 | NAJJ donated RM250 cash to the Rumah Anak Yatim Tuaran in the company’s name. | |
24 | NAJJ completed work for Alex’s Engineering Enterprise and sent it bill for RM3,950. | |
25 | NAJJ sent another bill to IFM Company for the past due amount of RM3,000. | |
28 | NAJJ reimbursed Najjmi Kutilang in cash for business automobile mileage (1,200 km). | |
30 | NAJJ paid Jasmine’ salary for November 2021. | |
30 | NAJJ paid RM 1,750 cash for Lyn Addie’s wages for 14 days’ work. | |
30 | Najjmi Kutilang withdrew RM2,000 cash from the company for personal use. | |
Dec | 2 | Paid RM1,025 cash to Hillside Mall for NAJJ Computer Sdn. Bhd.’ Share of mall advertising costs. |
3 | Paid RM500 cash for minor repairs to the company’s computer. | |
4 | Received RM3,950 cash from Alex’s Engineering Enterprise For the receivable from November. | |
10 | Paid cash to Lyn Addie for six days of work at the rate of RM50 per day. | |
14 | Notified by Alex’s Engineering Enterprise That NAJJ’s bid of RM7,000 on a proposal project has been accepted. Alex’s paid an RM1,500 cash advance to NAJJ Computer Sdn. Bhd.. | |
15 | Purchased RM1,000 of computer supplies on credit from Harris Office Products. | |
16 | Sent a reminder to Gomez Enterprise to pay the fee for services recorded on November 8. | |
20 | Completed a project for Liu Corporation and received RM5,625 cash. | |
22-26 | Took the week off for the holidays. | |
28 | Received RM3,000 cash from Gomez Enterprise on its receivable. | |
29 | Reimbursed Najjmi Kutilang’s business automobile mileage (600 km at RM0.32 per km). | |
31 | NAJJ paid Jasmine’ salary for December 2021. | |
31 | Najjmi Kutilang withdrew RM1,300 cash from the company for personal use. |
The following additional facts are collected for use in making adjusting entries prior to preparing financial statements for the company’s first three months.
- The December 31 balance of computer supplies shows RM580 still available.
- Three months have expired since the 12-months insurance premium was paid in advance.
- As of December 31, Lyn Addie has not been paid for four days of work at RM50 per day.
- The company’s computer and office equipment are expected to have a five-year life with no salvage value. NAJJ decided to use straight line method for the depreciation expenses estimation.
- Three of the four months’ prepaid rent has expired.
Required (PART 1):
- Prepare journal entries to record each of the transactions for NAJJ Computer Sdn. Bhd.
- Open ledger account and post the journal entries to each of the account.
- Prepare an unadjusted trial balance as of the end of December 2021.
- Prepare adjusting entries. Post those entries to the accounts in the ledger
- Prepare an adjusted trial balance as of December 31, 2011.
This is my answer, if it wrong please correct my answer
1. general Journal
Date | Description | Post Ref. | Debit | Credit | |
October | 1 | Cash | 101 | RM 55.000 | |
Computer Equipment | 106 | RM 20.000 | |||
Office Equipment | 163 | RM 8.000 | |||
N. Kutilang, Capital | 301 | RM 83.000 | |||
2 | Prepaid Rent | 640 | RM 4.400 | ||
Cash | 101 | RM 4.400 | |||
3 | Computer Supplies | 126 | RM 1.420 | ||
Account Payable | 201 | RM 1.420 | |||
5 | Prepaid Insurance | 128 | RM 2.400 | ||
Cash | 101 | RM 2.400 | |||
6 | Account Receivable | 106 | RM 6.200 | ||
Computer Services Revenue | 403 | RM 6.200 | |||
8 | Account Payable | 201 | RM 1.420 | ||
Cash | 101 | RM 1.420 | |||
12 | Account Receivable | 106 | 1400 | ||
Computer Services Revenue | 403 | 1400 | |||
15 | Cash | 101 | RM 4.800 | ||
Account Receivable | 106 | RM 4.800 | |||
17 | Repair Expense - Computer | 684 | RM 805 | ||
Cash | 101 | RM 805 | |||
20 | Advertising Expense | 655 | RM 1.940 | ||
Cash | 101 | RM 1.940 | |||
22 | Cash | 101 | RM 1.400 | ||
Account Receivable | 106 | RM 1.400 | |||
28 | Account Receivable | 106 | RM 5.208 | ||
Computer Service Revenue | RM 5.208 | ||||
31 | Salaries Expense | 625 | RM 750 | ||
Cash | 101 | RM 750 | |||
31 | Wages Expense | 623 | RM 875 | ||
Cash | 101 | RM 875 | |||
31 | N. Kutilang, Withdrawals | 302 | RM 3.600 | ||
Cash | 101 | 3600 | |||
Nov | 1 | Mileage Expense | 676 | 320 | |
Cash | 101 | 320 | |||
2 | Cash | 101 | 4633 | ||
Computer Service Revenue | 403 | 4633 | |||
5 | Computer Supplies | 126 | 1125 | ||
Cash | 101 | 1125 | |||
8 | Account Receivable | 106 | 5668 | ||
Computer Service Revenue | 403 | 5668 | |||
18 | Cash | 101 | 2208 | ||
Account Receivable | 106 | 2208 | |||
22 | Miscellaneous Expenses | 677 | 250 | ||
Cash | 101 | 250 | |||
24 | Account Receivable | 106 | 3950 | ||
Computer Service Revenue | 403 | 3950 | |||
28 | Mileage Expense | 676 | 384 | ||
Cash | 101 | 384 | |||
30 | Salaries Expense | 625 | 750 | ||
Cash | 101 | 750 | |||
30 | Wages Expense | 623 | 1750 | ||
Cash | 101 | 1750 | |||
30 | N. Kutilang, Withdrawals | 302 | 2000 | ||
Cash | 101 | 2000 | |||
December | 2 | Advertising Expense | 655 | 1025 | |
Cash | 101 | 1025 | |||
3 | Repairs expense - Computer | 684 | 500 | ||
Cash | 101 | 500 | |||
4 | Cash | 101 | 3950 | ||
Account Receivable | 106 | 3950 | |||
10 | Wages Expense | 623 | 300 | ||
Cash | 101 | 300 | |||
14 | Cash | 101 | 1500 | ||
Unearned Computer Service Revenue | 232 | 1500 | |||
15 | Computer Supplies | 126 | 1000 | ||
Account Payable | 201 | 1000 | |||
20 | Cash | 101 | 5625 | ||
Computer Service Revenue | 403 | 5625 | |||
28 | Cash | 101 | 3000 | ||
Account Receivable | 106 | 3000 | |||
29 | Mileage Expense | 676 | 192 | ||
Cash | 101 | 192 | |||
31 | Salaries Expense | 625 | 750 | ||
Cash | 101 | 750 | |||
31 | N. Kutilang, Withdrawals | 302 | 1300 | ||
Cash | 101 | 1300 |
2. Unadjusted Trial Balance
NAJJ Computer | ||
Unadjusted Trial Balance | ||
31 December 2021 | ||
Cash | RM 55.280 | |
Account Receivable | RM 7.068 | |
Computer Supplies | RM 3.545 | |
Prepaid Insurance | RM 2.400 | |
Prepaid Rent | RM 4.400 | |
Office Equipment | RM 8.000 | |
Accumulated Depreciation - Office Equipment | ||
Computer Equipment | RM 20.000 | |
Accumulated Depreciation - Computer Equipment | ||
Account Payable | RM 1.000 | |
Wages Payable | ||
Unearned Service Revenue | RM 1.500 | |
N. Kutilang, Capital | RM 83.000 | |
N. Kutilang, Withdrawals | RM 6.900 | |
Computer Service Revenue | RM 32.684 | |
Depreciation Expense - Office Equipment | ||
Depreciation Expense - Computer Service | ||
Wages Expense | RM 2.925 | |
Salaries Expense | RM 2.250 | |
Insurance Expense | ||
Rent Expense | ||
Computer Supplies Expense | ||
Advertising Expenses | RM 2.965 | |
Mileage Expense | RM 896 | |
Miscellaneous Expense | RM 250 | |
Repair Expenses - Computer | RM 1.305 | |
RM 118.184 | RM 118.184 |
3. Adjusting Entries
Date | Description | Post Ref. | Debit | Credit | |
December | 31 | Computer Supplies Expense | 652 | 2965 | |
Computer Supplies | 126 | 2965 | |||
31 | Insurance Expense | 637 | 600 | ||
Prepaid Insurance | 128 | 600 | |||
31 | Wages Expense | 623 | 200 | ||
Wages Payable | 210 | 200 | |||
31 | Depreciation Expense - Computer Equipment | 613 | 1000 | ||
Accumalated Depreciation - Computer Equipment | 168 | 1000 | |||
31 | Depreciation Expense - Office Equipment | 612 | 400 | ||
Accumalated Depreciation - Office Equipment | 164 | 400 | |||
31 | Rent Expense | 640 | 3300 | ||
Prepaid Rent | 131 | 3300 |
4. Adjusted trial balance
NAJJ Computer | ||
Unadjusted Trial Balance | ||
31 December 2021 | ||
Cash | RM 55.280 | |
Account Receivable | RM 7.068 | |
Computer Supplies | RM 580 | |
Prepaid Insurance | RM 2.000 | |
Prepaid Rent | RM 1.100 | |
Office Equipment | RM 8.000 | |
Accumulated Depreciation - Office Equipment | RM 400 | |
Computer Equipment | RM 20.000 | |
Accumulated Depreciation - Computer Equipment | RM 1.000 | |
Account Payable | RM 1.000 | |
Wages Payable | RM 200 | |
Unearned Service Revenue | RM 1.500 | |
N. Kutilang, Capital | RM 83.000 | |
N. Kutilang, Withdrawals | RM 6.900 | |
Computer Service Revenue | RM 32.684 | |
Depreciation Expense - Office Equipment | RM 400 | |
Depreciation Expense - Computer Service | RM 1.000 | |
Wages Expense | RM 3.125 | |
Salaries Expense | RM 2.250 | |
Insurance Expense | RM 400 | |
Rent Expense | RM 3.300 | |
Computer Supplies Expense | RM 2.965 | |
Advertising Expenses | RM 2.965 | |
Mileage Expense | RM 896 | |
Miscellaneous Expense | RM 250 | |
Repair Expenses - Computer | RM 1.305 | |
RM 121.184 | RM 118.384 |