Assignment Task
Financial Accounting
Part I
Purpose
The purpose of this assignment is to enhance learners’ understanding of the users of accounting information and enhance learners’ skills to analyze transactions and prepare journal entries, trial balance, and financial statements.
Requirement
Answer all the questions and show your detailed workings clearly and systematically.
Assignment 1
a) The main purpose of accounting is to provide information to the users of an organization to make better decisions. Identify ONE external user and ONE internal user of accounting information and for each user, indicate ONE accounting information that might be useful to assist the decision-making.
b) Puan Amanda Sofea commenced her legal practice known as Amanda & Co. on 1 November 2022.
Date Transactions
November 1
Amanda invested RM15,000 cash and a bookshelf for the law library valued at RM6,000.
5 Purchased RM7,500 of office equipment from Lexus Trading on credit.
8 Completed legal work for a client and received RM1,500 cash in full payment.
10 Paid Lexus Trading RM3,500 cash in partial settlement of the amount owed.
13 Completed RM4,000 of legal work for a client on credit.
18 Amanda withdrew RM2,000 cash for personal use.
22 Received RM2,500 cash as partial payment for the legal work completed for the client on 13 November.
30
Paid RM1,200 cash for the secretary’s salary
Required:
Prepare the journal entries for all the above transactions.
ASSIGNMENT 2
Below are unadjusted accounts’ balances for Warisan Trading as at 31 December 2022:
Accounts RM
Cash 62,400
Account receivables 196,350
Office Supplies 16,200
Prepaid utilities 32,580
Prepaid insurance 25,200
Office equipment 44,040
Accumulated depreciation – office equipment 13,200
Unearned revenue 89,550
Capital 233,400
Service revenue 122,040
Salaries expense 54,000
Miscellaneous expense 27,420
The following items were found omitted at the end of the accounting period:
1. Office supplies on hand at 31 December 2022 amounted to RM7,050.
2. Prepaid insurance represented premiums paid on 1 April 2022 for a period of one year.
3. Depreciation of office equipment based on the straight-line method. The office equipment has 8 8-year estimated useful life with no salvage value.
4. Salaries expense for the month of December is RM4,500 and only be paid in early 2023.
5. Unearned revenue on 31 December 2022 is RM63,750.
Required:
a) Prepare the adjusting entries on 31 December 2022.
b) Prepare the income statement, statement of equity, and balance sheet for Warisan Trading.
Part II
Online Class Participation
Discuss the following topic(s) in the forum and submit proof of your participation in the online discussions:
1) Discuss how accounting knowledge is useful and applicable in your workplace.
2) Explain how accounting influences your personal decision-making.
3) Assume you are considering investing in a company. You read the annual report to evaluate the company. In your opinion, explain to other potential investors how the information in annual reports can help them make investment decisions.
