(a) Prepaid journal entries for the year ended 31 December 2015

Date Details Debit (RM) Credit (RM)

Dec 31 Depreciation Expenses – Office Equipment 18,000
Accumulated Depreciation – Office Equipment 18,000

Insurance Expenses 2,240

Prepaid Insurance 2,240

Supplies Expenses 2,000

Supplies 2,000

Wages Expenses 1,000

Accrued Wages 1,000

Account Receivable 3,100

Revenue 3,100
(b) Prepaid adjusted Trial Balance as at 31 December 2015

Details Debit (RM) Credit (RM)

Cash 74,330
Account Receivable (8,700 + 3,100) 11,800
Office Supplies (3,550 – 2,000) 1,550
Prepaid Insurance (6,720 – 2,240) 4,480
Office Equipment 120,000
Accumulated Depreciation – Office Equipment (54,000 +18,000) 72,000
Account Payable 9,800
Capital 110,000
Revenue (118,900 + 3,100) 122,000
Wages Expense (47,700 + 1,000) 48,700
Other Operating Expenses 31,700
Depreciation Expenses – Office Equipment 18,000
Insurance Expenses 2,240
Office Supplies Expenses 2,000
Wages Accrued 1,000
Total 314,800 314,800
© Prepare an Income Statement for the year ended 31 December 2015

Details Debit (RM) Credit (RM)

Revenue 122,000
(-) Operating Expenses
Wages Expense 48,700
Other Operating Expenses 31,700
Depreciation Expenses – Office Equipment 18,000
Insurance Expenses 2,240
Office Supplies Expenses 2,000
(102,640)
Net Profit 19,360
(d) Prepare a Balance Sheet for the business as at 31 December 2015

Details
Non-Current-Asset
Office Equipment 120,000
Accumulated Depreciation – Office Equipment (54,000 +18,000) (72,000)
48,000
Current Asset
Cash 74,330
Account Receivable (8,700 + 3,100) 11,800
Office Supplies (3,550 – 2,000) 1,550
Prepaid Insurance (6,720 – 2,240) 4,480
92,160
Total Asset 140,160
Equity
Capital 110,000
+ Net Profit 19,360
Total Capital 129,360

Current Liabilities
Account Payable 9,800
Wages Accrued 1,000
10,800
Total Equity and Liabilities 140,160