1. PAF3023: Introductory Accounting
Tutorial
On 1st
December 2014, the account balances of Frozen Enterprise were as follows:
Dt Cr
Cash 16,700
Account receivable 18,800
Inventory 2,400
Prepaid insurance 800
Supplies 1,000
Equipment 21,750
Accumulated depreciation-Equipment 4,500
Account Payable 3,750
Frozen Enterprise-Capital 53,200
61,450 61,450
Frozen enterprise had the following transactions during the month of December.
Dec 5 Purchased RM3,500 of merchandise from Cold Air on account, terms 3/15, n,30.
Dec 6 Sold RM10,000 of mechansece to Afza Enterprise on amount, terms 2/10, n/30.
The cost of merchandise was RM3,000.
Dec 7 Paid the transportation costs for the sale on 6th
December, RM450.
Dec 8 Paid the shipping cost incurred on the 5th
December’s purchase, RM230.
Dec 9 Returned RM600 of merchandise to Cold Air for credit.
Dec 11 The customer from December 6, returned RM800 of defective merchandise. The
cost of merchandise was RM480.
Dec 14 Received payment from Afza Enterprise.
Dec 18 Paid the amount owned to Cold Air.
Adjustment data at 31st
December 2014.
i. Supplies on hand at 31st
December 2014 were RM750.
ii. Insurance expires at the rate of RM150 per month.
iii. Depreciation on the equipment for the month of December was RM280.
iv. Salaries of RM500 were unpaid at 31st
December 2014.
v. Merchandise inventory on hand at 31st
December 2014 was RM2,000.
2. PAF3023: Introductory Accounting
REQUIRED :
a) Prepare the journal entries for Frozen Enterprise for the month of
December 2014-no explanation required).
b) Post the December transactions to ledger (booklet answer provided).
c) Journalize the adjusting entries at 31st
December 2014.
d) Complete the worksheet.
10. PAF3023: Introductory Accounting
WORKSHEET
Account Trial Balance Adjustment Adjusted Trial
Balance
Trading
Account
Profit & Loss
Account
Statement of
Financial Position
Dr Cr Dr Cr Dr Cr Dr Cr Dr Cr Dr Cr
