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A222 Tutorial 2Q

This document provides a tutorial on basic accounting concepts related to adjusting entries. It includes 10 multiple choice questions that cover topics such as the definition of adjusting entries, accounts involved in adjusting entries, when they are recorded, examples of adjusting entries, how they affect financial statements, the purpose of an adjusted trial balance, what accounts are included, and the typical order of accounts. It also provides an unadjusted trial balance for a company called GIGAMA Enterprise and asks the student to prepare three financial statements after making appropriate adjusting entries.

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61 views4 pages

A222 Tutorial 2Q

This document provides a tutorial on basic accounting concepts related to adjusting entries. It includes 10 multiple choice questions that cover topics such as the definition of adjusting entries, accounts involved in adjusting entries, when they are recorded, examples of adjusting entries, how they affect financial statements, the purpose of an adjusted trial balance, what accounts are included, and the typical order of accounts. It also provides an unadjusted trial balance for a company called GIGAMA Enterprise and asks the student to prepare three financial statements after making appropriate adjusting entries.

Uploaded by

nur afrina
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PDF, TXT or read online on Scribd
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SEMESTER A222

BKAN1013 BASIC ACCOUNTING


TUTORIAL 2 (TOPIC 4)
SUBMISSION DEADLINE: 6/6/2023

PART A: STRUCTURED QUESTIONS

1. Which of the following best describes adjusting entries?


A. Entries made to correct errors in the accounting records
B. Entries made to update accounts at the end of an accounting period
C. Entries made to record business transactions during the period
D. Entries made to close temporary accounts

2. Which accounts are typically involved in adjusting entries?


A. Assets and liabilities
B. Revenues and expenses
C. Equity and dividends
D. Income and expenses

3. When are adjusting entries usually recorded?


A. At the beginning of the accounting period
B. Throughout the accounting period
C. At the end of the accounting period
D. Adjusting entries are not necessary in accounting

4. Which of the following is an example of an adjusting entry?


A. Recording the sale of a product
B. Paying rent for the current month
C. Accruing unpaid salaries at the end of the period
D. Depositing cash into the bank account

5. How do adjusting entries affect the financial statements?


A. They have no impact on the financial statements
B. They increase both assets and liabilities
C. They only affect the income statement
D. They ensure that revenues and expenses are properly reported

6. What is the purpose of preparing an adjusted trial balance?


A. To determine the net income or net loss for the period
B. To verify that total debits equal total credits after adjusting entries
C. To calculate the ending balance of each account
D. To record closing entries for temporary accounts

7. Which accounts are included in the adjusted trial balance?


A. Only temporary accounts
B. Only permanent accounts
C. Both temporary and permanent accounts
D. Only revenue and expense accounts

8. How are accounts ordered in the adjusted trial balance?


A. Alphabetically by account name
B. By the account numbers assigned to each account
C. By the account balances, starting with the largest
D. In the order they appear on the financial statements

9. If the adjusted trial balance shows total debits of $50,000 and total credits of $52,000, what
does it indicate?
A. The accounting records contain errors
B. There is a net loss of $2,000 for the period
C. The trial balance is in balance
D. Additional adjusting entries are needed

10. What is the next step after preparing the adjusted trial balance?
A. Closing temporary accounts
B. Preparing financial statements
C. Posting adjusting entries
D. Reconciling bank statements

PART B: STRUCTURED QUESTIONS

The unadjusted trial balance of GIGAMA Enterprise as at 31 December 2022 is as follows:

GIGAMA Enterprise
Unadjusted Trial Balance
31 December 2022
Debit Credit
RM RM
Cash 70,330
Accounts receivable 9,700
Office supplies 3,550
Prepaid insurance 6,720
Motor vehicle 120,000
Salaries payable 5,000
Accounts payable 13,800
Capital 105,000
Revenue 168,900
Salaries expense 60,700
Other operating expenses 21,700
292,700 292,700

The followings are information related to year-end adjustments.


1. Salaries accrued on 31 December 2022 were RM5,000.
2. Insurance premium expired during the year were RM2,240.
3. Office supplies on hand on 31 December 2022 were RM1,550.
4. Unbilled customer at the end of the year amounted to RM7,000.
5. Motor vehicle is purchased on 1 July 2022. It is estimated that the vehicle has expected
useful life of 20 years and has RM10,000 scrap value. The business uses straight line
method to depreciate the asset.
REQUIRED:

(a) Prepare the Statement of Profit or Loss and Other Comprehensive Income of GIGAMA
Enterprise for the year ended 31 December 2022.

(b) Prepare the Statement of Changes in Equity of GIGAMA Enterprise for the year ended
31 December 2022

(c) Prepare the Statement of Financial Position of GIGAMA Enterprise as of 31


December 2022.

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