ASSIGNMENT 2- 17 OKTOBER 2013- Submission Date 20/10.

QUESTION 1: ACCOUNTING EQUATION QUESTION 1 On May 2012, Ahmad Idham established the Idham Travel Agency. The following transactions were completed during the month: 1. Invest RM20,000 cash in Idham Travel Agency. 2. Paid RM400 cash for May office rent. 3. Purchased office equipment for RM2,500 cash. 4. Incurred RM300 of advertising cost in The Star, on account. 5. Paid RM600 cash for office supplies. 6. Earned RM9,000 for services rendered: Cash of RM1,000 is received from customers and the balance of RM8,000 is billed to customers on account. 7. Withdrew RM200 cash for personal use. 8. Paid The Star amount due in transaction (4). 9. Paid employees salaries, RM1,200 10. Received RM8,000 in cash from customers who have previously been billed in transaction (6). REQUIRED: Based on the above information, indicate the effects of each transaction to the accounting equation shown below and calculate the ending balance at May 31, 2012 for each account involved.
QUESTION 2: ADJUSTING ENTRIES

Use this information pertaining to Salvia Company to prepare year-end adjustments. Omit explanations. 1. The corporation's Store Supplies account showed a beginning debit balance of $200 and supplies purchased of $800. There were $300 of supplies on hand at year end. Depreciation on a building is estimated to be $5,000. A one-year insurance policy was purchased for $2,000. Three months have passed since the purchase. Accrued interest on a note receivable amounted to $100. The company received a $3,600 advance payment during the year on services to be performed. By the end of the year, one-fourth of the services had been performed.

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