Question

TASK 1 : 1. Hani owns a consulting firm named Hani Consultancy on January 2019. The following transactions occurred during the month of January 2019. January Transactions 1 Lina invested RM50,000 cash in the business. 2 Paid office rental for the month for RM6000. 3 Purchased supplies worth RM4000 on account. 5 Paid RM300 for advertisement purposes in a newspaper. 7 Interviewed candidates for job vacancy with monthly salary of RM2,700. 9 Received RM27,000 cash for services provided. 12 Office renovation cost RM5,300 paid by cash. 15 Received service revenue RM4,500 on account. 16 Paid for insurance RM1,200. 17 Paid staff salaries for RM5,600 using cash. 20 Supplies purchased on 3 January are fully paid with cash. 23 Received service revenue amounting to RM7,300 on credit. 26 Borrowed RM300,000 long-term loan from MBB Bank. 29 Purchased office equipment for RM30,000 on account using notes payable. 30 Paid utilities for RM2,200. Required: Show the effects of the above transactions based on the accounting equation in the form of Tabular table as shown below. Assets Liabilities + Owners’ Equity Date Cash Accounts receivable Supplies Office equipment = Long-term loan Accounts payable Notes payable Revenue - (expenses) (Total: 15 marks)

Answer 1

	ASSET							=	LIABILITIES					+	OWNERS EQUITY
DATE	CASH	+	ACCOUNTS RECEIVABLE	+	SUPPLIES	+	OFFICE EQUIPMENT	=	ACCOUNTS PAYABLE	+	NOTE PAYABLE	+	LONG TERM LOAN	+	CAPITAL	+	REVENUE	-	EXPENSE
1	50000														50000
2	-6000																		6000
3					4000				4000
5	-300																		300
7	NO ENTRY FOR HIRING
9	27000																27000
12	-5300																		5300
15			4500														4500
16	-1200																		1200
17	-5600																		5600
20	-4000								-4000
23			7300														7300
26	300000												300000
29							30000				30000
30	-2200																		2200
TOTAL	352400	+	11800	+	4000	+	30000	=	0	+	30000	+	300000	+	50000	+	38800	-	20600