can you help me correct these? because I can't detect what is wrong and my statement of financial position is not balance. Inventories 31 December 2019 RM500 000. Commission revenue of RM500 was for the month January 2020. Rent revenue of RM750 for the month of December 2019 was still not received. Insurance expense was for a year starting April 1, 2019. There was still unpaid worker’s salary of RM9 000. Sales discount of RM600 was recorded as sales return and allowances. GENERAL JOURNAL DATE DETAILS DEBIT CREDIT Dec 31 Dr. Commission revenue Cr. Unearned commission revenue (To record commission revenue) 500 500 Dr. Accrued rent revenue Cr. Rent revenue (To record accrued rent revenue) 750 750 Dr. Prepaid insurance (16 000 x 9/12) Cr. Insurance expense (To record prepaid insurance) 12 000 12 000 Dr. Salaries expenses Cr.Accrued salaries (To record accrued salaries) 9 000 9 000 Dr. Sales discount Cr. Sales return and allowances ( To record correcting entries) 600 600 POLABOOKS BOOKSTORE ADJUSTED TRIAL BALANCE AS AT AUGUST 31, 2019 ACCOUNTS DEBIT (RM) CREDIT (RM) Capital (1 January 2019) 1 377 000 Cash 15 555 Bank 1 685 064 Equipment 280 000 Furniture 350 000 Vehicle 748 000 Investment 500 000 Inventories 360 000 Accounts Payable: Kedai Alat Sukan Gagah 167 563 Hadiy Sports Sdn Bhd 240 858 Nafiz Sports House Enterprise 287 867 Accounts Receivable: Pusat Sukan Bukit Gasing 245 870 Pusat Gym Sihat 177 890 Notes Payable 200 000 Loan 800 000 Sales 3 070 663 Commission Revenue (58 456 - 500) 57 956 Purchases 1 500 765 Sales Return (15 640 – 600) 15 040 Sales Discount ( 10 600 + 600) 11 200 Purchases Return 20 878 Purchases Discount 37 734 Freight In 10 000 Customs Duties 10 878 Supplies Expenses 25 300 Salary Expense (160 000 + 9 000) 250 000 Rent Expense 48 000 Utilities Expense 37 800 Insuranse Expense (16 000 – 12 000) 4 000 Miscellaneous Expense 48 000 Drawings 15 657 Unearned Commission Revenue 500 Accrued Rent Revenue 750 Rent Revenue 750 Prepaid Insurance 12 000 Accrued Salary 9 000 TOTAL 6 270 769 6 270 769 POLABOOKS BOOKSTORE STATEMENT PROFIT OR LOSS FOR THE YEAR ENDED 31 DECEMBER 2019 (RM) (RM) (RM) Sales 3 070 663 (-) Sales Return (15 040) (-) Sales Discount (11 200) NET SALES 3 044 423 Less : Cost of Goods Sold Beginning Inventories 360 000 (+) Purchases 1 500 765 (-) Purchase Return (20 878) (-) Purchase Discounts (37 734) NET PURCHASES 1 442 153 (+) Freight In 10 000 Cost of Goods Purchased 1 452 153 Cost of Goods Available for Sale 1 812 153 (-) Ending Inventories (450 000) Cost of Goods Sold (1 362 153) GROSS PROFIT 1 682 270 (+) Other Revenue Rent Revenue 750 Commission Revenue 58 956 59 706 Less : Operating Expenses Supplies Expense 25 300 Salary Expense 250 000 Rent Expense 48 000 Utilities Expense 37 800 Insurance Expense 4 000 Custom Duties 10 878 Micellaneous Expense 48 000 Total Operating Expenses (423 978) NET PROFIT 1 317 998 POLABOOKS BOOKSTORE STATEMENT OF OWNER’S EQUITY FOR THE YEAR ENDED 31 DECEMBER 2019 (RM) (RM) Beginning Capital 1 377 000 (+) Net Profit 1 317 998 (-) Drawings (15 657) ENDING CAPITAL 2 679 341 POLABOOKS BOKSTORE STATEMENT OF FINANCIAL POSITION AS AT 31 DECEMBER 2019 (RM) (RM) NON-CURRENT ASSETS : Equipment 280 000 Furniture 350 000 Investment 500 000 Vehicle 748 000 TOTAL NON-CURRENT ASSETS 1 878 000 CURRENT ASSETS : Cash 15 555 Bank 1 685 064 Ending Inventories 450 000 Accounts Receivable : Pusat Sukan Bukit Gasing 245 870 Pusat Gym Sihat 177 890 Prepaid Insurance 12 000 Accrued Rent Revenue 750 TOTAL CURRENT ASSETS 2 587 129 TOTAL ASSETS 4 465 129 OWNER’S EQUITY : Ending Capital 2 679 341 NON-CURRENT LIABILITIES : Notes Payable 200 000 Loan 800 000 TOTAL NON-CURRENT LIABILITIES 1 000 000 CURRENT LIABILITIES : Accounts Payable : Kedai Alat Sukan Gagah 167 563 Hadiy Sports Sdn Bhd 240 858 Nafiz Sports House Enterprise 287 867 Accrued Salary 9 000 Unearned Commission Revenue 500 TOTAL CURRENT LIABILITIES 705 788 TOTAL LIABILITIES AND OWNER’S EQUITY 4 385 129
can you help me correct these? because I can't detect what is wrong and my
- Inventories 31 December 2019 RM500 000.
- Commission revenue of RM500 was for the month January 2020.
- Rent revenue of RM750 for the month of December 2019 was still not received.
- Insurance expense was for a year starting April 1, 2019.
- There was still unpaid worker’s salary of RM9 000.
- Sales discount of RM600 was recorded as sales return and allowances.
GENERAL JOURNAL
|
DATE |
DETAILS |
DEBIT |
CREDIT |
|
Dec 31 |
Dr. Commission revenue Cr. Unearned commission revenue (To record commission revenue) |
500 |
500 |
|
|
Dr. Accrued rent revenue Cr. Rent revenue (To record accrued rent revenue) |
750 |
750 |
|
|
Dr. Prepaid insurance (16 000 x 9/12) Cr. Insurance expense (To record prepaid insurance) |
12 000 |
12 000 |
|
|
Dr. Salaries expenses Cr.Accrued salaries (To record accrued salaries) |
9 000 |
9 000 |
|
|
Dr. Sales discount Cr. Sales return and allowances ( To record correcting entries) |
600 |
600 |
POLABOOKS BOOKSTORE
ADJUSTED
AS AT AUGUST 31, 2019
|
ACCOUNTS |
DEBIT (RM) |
CREDIT (RM) |
|
Capital (1 January 2019) |
|
1 377 000 |
|
Cash |
15 555 |
|
|
Bank |
1 685 064 |
|
|
Equipment |
280 000 |
|
|
Furniture |
350 000 |
|
|
Vehicle |
748 000 |
|
|
Investment |
500 000 |
|
|
Inventories |
360 000 |
|
|
Accounts Payable: |
|
|
|
Kedai Alat Sukan Gagah |
|
167 563 |
|
Hadiy Sports Sdn Bhd |
|
240 858 |
|
Nafiz Sports House Enterprise |
|
287 867 |
|
|
|
|
|
Pusat Sukan Bukit Gasing |
245 870 |
|
|
Pusat Gym Sihat |
177 890 |
|
|
Notes Payable |
|
200 000 |
|
Loan |
|
800 000 |
|
Sales |
|
3 070 663 |
|
Commission Revenue (58 456 - 500) |
|
57 956 |
|
Purchases |
1 500 765 |
|
|
Sales Return (15 640 – 600) |
15 040 |
|
|
Sales Discount ( 10 600 + 600) |
11 200 |
|
|
Purchases Return |
|
20 878 |
|
Purchases Discount |
|
37 734 |
|
Freight In |
10 000 |
|
|
Customs Duties |
10 878 |
|
|
Supplies Expenses |
25 300 |
|
|
Salary Expense (160 000 + 9 000) |
250 000 |
|
|
Rent Expense |
48 000 |
|
|
Utilities Expense |
37 800 |
|
|
Insuranse Expense (16 000 – 12 000) |
4 000 |
|
|
Miscellaneous Expense |
48 000 |
|
|
Drawings |
15 657 |
|
|
Unearned Commission Revenue |
|
500 |
|
Accrued Rent Revenue |
750 |
|
|
Rent Revenue |
|
750 |
|
Prepaid Insurance |
12 000 |
|
|
Accrued Salary |
|
9 000 |
|
TOTAL |
6 270 769 |
6 270 769 |
POLABOOKS BOOKSTORE
STATEMENT PROFIT OR LOSS
FOR THE YEAR ENDED 31 DECEMBER 2019
|
|
(RM) |
(RM) |
(RM) |
|
Sales |
|
3 070 663 |
|
|
(-) Sales Return |
|
(15 040) |
|
|
(-) Sales Discount |
|
(11 200) |
|
|
NET SALES |
|
|
3 044 423 |
|
Less : Cost of Goods Sold |
|
|
|
|
Beginning Inventories |
|
360 000 |
|
|
(+) Purchases |
1 500 765 |
|
|
|
(-) Purchase Return |
(20 878) |
|
|
|
(-) Purchase Discounts |
(37 734) |
|
|
|
NET PURCHASES |
1 442 153 |
|
|
|
(+) Freight In |
10 000 |
|
|
|
Cost of Goods Purchased |
|
1 452 153 |
|
|
Cost of Goods Available for Sale |
|
1 812 153 |
|
|
(-) Ending Inventories |
|
(450 000) |
|
|
Cost of Goods Sold |
|
|
(1 362 153) |
|
GROSS PROFIT |
|
|
1 682 270 |
|
(+) Other Revenue |
|
|
|
|
Rent Revenue |
|
750 |
|
|
Commission Revenue |
|
58 956 |
|
|
|
|
|
59 706 |
|
Less : Operating Expenses |
|
|
|
|
Supplies Expense |
|
25 300 |
|
|
Salary Expense |
|
250 000 |
|
|
Rent Expense |
|
48 000 |
|
|
Utilities Expense |
|
37 800 |
|
|
Insurance Expense |
|
4 000 |
|
|
Custom Duties |
|
10 878 |
|
|
Micellaneous Expense |
|
48 000 |
|
|
Total Operating Expenses |
|
|
(423 978) |
|
NET PROFIT |
|
|
1 317 998 |
POLABOOKS BOOKSTORE
STATEMENT OF OWNER’S EQUITY
FOR THE YEAR ENDED 31 DECEMBER 2019
|
|
(RM) |
(RM) |
|
Beginning Capital |
1 377 000 |
|
|
(+) Net Profit |
1 317 998 |
|
|
(-) Drawings |
(15 657) |
|
|
ENDING CAPITAL |
|
2 679 341 |
POLABOOKS BOKSTORE
STATEMENT OF FINANCIAL POSITION
AS AT 31 DECEMBER 2019
|
|
(RM) |
(RM) |
|
NON-CURRENT ASSETS : |
|
|
|
Equipment |
280 000 |
|
|
Furniture |
350 000 |
|
|
Investment |
500 000 |
|
|
Vehicle |
748 000 |
|
|
TOTAL NON-CURRENT ASSETS |
|
1 878 000 |
|
CURRENT ASSETS : |
|
|
|
Cash |
15 555 |
|
|
Bank |
1 685 064 |
|
|
Ending Inventories |
450 000 |
|
|
Accounts Receivable : |
|
|
|
Pusat Sukan Bukit Gasing |
245 870 |
|
|
Pusat Gym Sihat |
177 890 |
|
|
Prepaid Insurance |
12 000 |
|
|
Accrued Rent Revenue |
750 |
|
|
TOTAL CURRENT ASSETS |
|
2 587 129 |
|
TOTAL ASSETS |
|
4 465 129 |
|
|
|
|
|
OWNER’S EQUITY : |
|
|
|
Ending Capital |
|
2 679 341 |
|
|
|
|
|
NON-CURRENT LIABILITIES : |
|
|
|
Notes Payable |
200 000 |
|
|
Loan |
800 000 |
|
|
TOTAL NON-CURRENT LIABILITIES |
|
1 000 000 |
|
CURRENT LIABILITIES : |
|
|
|
Accounts Payable : |
|
|
|
Kedai Alat Sukan Gagah |
167 563 |
|
|
Hadiy Sports Sdn Bhd |
240 858 |
|
|
Nafiz Sports House Enterprise |
287 867 |
|
|
Accrued Salary |
9 000 |
|
|
Unearned Commission Revenue |
500 |
|
|
TOTAL CURRENT LIABILITIES |
|
705 788 |
|
TOTAL LIABILITIES AND OWNER’S EQUITY |
|
4 385 129 |
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