BKAL1013 A172 TUTORIAL 2

TUTORIAL 2
DUE DATE: 25 MARCH 2018

PART A: 20 MULTIPLE-CHOICE QUESTIONS

1. After a business transaction has occurred, journal entries are recorded in the:
A. general ledger
B. general journal
C. expense accounts
D. balance sheet B

2. Which financial statement uses the expanded accounting equation?

A. income statement
B. balance sheet
C. cash flow statement
D. statement of stockholder’s equity B

3. Expenses accounts have what type of balance?

A. Debit
B. Credit
C. Contra
D. all of the above A

4. Which financial statement displays the revenues and expenses of a company for a period
of time?
A. income statement
B. balance sheet
C. cash flow statement
D. statement of stockholder’s equity A

5. Which account is not a liability account?

A. accounts payable
B. accrued expenses
C. loan to employee
D. notes payable C

6. Which trial balance lists all the business accounts before year-end adjusting journal
entries are made?
A. adjusted trial balance
B. unadjusted trial balance
C. post-closing trial balance
D. pre closing trial balance A

7. What is the main purpose of financial accounting?

A. organize financial information
B. provide useful, financial information to outsiders
C. keep track of company expenses
D. minimize company taxes B
BKAL1013 A172 TUTORIAL 2

8. Which account increases equity?

A. Expenses
B. Withdrawals
C. treasury stock
D. revenues D

9. Accounts with balances that are carried over to future years is known as:
A. temporary accounts
B. permanent accounts
C. expense accounts
D. withdrawal accounts B

10. Which of the following statements is correct?

A. A Trial balance is a list of balances in all ledger accounts.
B. A Trial balance is a list of balances in the cash account and all ledger accounts.
C. A Trial balance is another ledger account.
D. A Trial balance is a list of all entries made in the books of account. A

11. The accounting entries for recording RM150,000 cash introduced by the owner of a
business are:
A. Debit Cash account and Credit Investments account
B. Credit Cash account and Debit Owner's account
C. Debit Cash account and Credit Capital account
D. Credit Cash account and Debit Investment in business account C

12. Accounting entries for recording the payment of an utility bill are:
A. Credit Cash account and Debit Office Equipment account
B. Debit Capital account and Credit Cash account
C. Debit Cash account and Credit Utility expenses account
D. Credit Cash Account and Debit Utility expenses account D

13. Accounting entries for the repayment of a loan received from Rashid, the owner’s friend:
A. Credit Cash account and Debit Capital account
B. Credit Cash Account and Debit Rashid’s Loan account
C. Debit Cash account and Credit Capital account
D. Debit Cash account and credit Rashid’s Loan account D

14. Entries made to transfer temporary account balances to permanent accounts.

A. journal entries
B. adjusting entries
C. reversing entries
D. closing entries D

15. A contra asset account has what type of balance?

A. Debit
B. Credit
C. Contra
D. all of the above C
BKAL1013 A172 TUTORIAL 2

For Questions 16-20, please indicate the effect of the transaction on accounting equation.

16. A business receives a utility bill and pay the bill in cash.
A. Assets decrease; owner's equity decreases
B. Assets increase; liabilities increase
C. Liabilities increase; owner's equity decreases
D. Liabilities increase; owner's equity increases
A
17. Mila Kuna Enterprise purchased equipment for RM60,000, paying RM20,000 in cash and
the balance on account.
A. Assets increase RM40,000; liabilities decrease RM40,000
B. Assets increase RM60,000; liabilities decrease RM60,000
C. Assets increase RM40,000; owner's equity increases RM40,000
D. Assets increase RM40,000; liabilities increase RM40,000
D
18. On 25 July 2017, Bora Agency purchased office supplies for RM9,000, paid RM2,000 and
agreed with the supplier to pay the remaining in the following month.
A. Decrease in assets RM2,000; increase in owner’s equity RM7,000
B. Decrease in assets RM9,000, owner’s equity remains unchanged
C. Increase in assets RM7,000; increase in liabilities RM7,000
D. Increase in assets RM9,000; increase in liabilities RM9,000
C
19. On 15 June 2017, Pore Pori Enterprise purchased on account from CokeeSdnBhd, six units
of office chair for RM1,550 and paid RM150 for the delivery.
A. Increase in assets RM1,400; increase in liabilities RM1,550 and decrease in owner’s
equity RM150
B. Increase in assets RM1,550; decrease in liabilities RM1,550
C. Decrease in owner’s equity RM1,550; decrease in assets RM1,550
D. Increase in liabilities RM1,700; decrease in owner’s equity RM1,700
A
20. On 1 January 2016 Bella, the sole-owner of MeMe Saloon, invested RM40,000 cash plus
a car worth RM42,500 for the business. On the same day, she paid RM1,500 for cleaning
services.
A. Increase in assets RM81,000; increase in owner’s equity RM81,000
B. Increase in assets RM81,500; increase in owner’s equity RM81,500
C. Increase in assets RM40,000; increase in owner’s equity RM40,000
D. Increase in assets RM81,000; increase in owner’s equity RM81,500; decrease in
liability RM500.
D
BKAL1013 A172 TUTORIAL 2

PART B: STRUCTURED QUESTION

TISA-Service had the following transactions in December 2017:

1. December 2, Owner invested RM80,000 in cash.

2. December 9, TISA-Service borrowed RM50,000 from a bank.
3. December 11, TISA-Service purchased supplies RM5,000 in cash and RM30,000 on
account.
4. December 30, TISA-Service purchased vehicle and paid RM50,000 in cash
5. December 31, the following transactions taken place:
a. Received utility bills amounted RM1,100
b. Shop assistants salary to be paid on 1 January is RM3,000
c. Shop rental due for a month is RM2,500
d. Fully paid the account payable
e. Sales for the month is amounted RM100,500
f. Stock count show the following balance
i. RM5,000 of supplies

REQUIRED:

Prepare journal entries, Statement of Profit or Loss and Other Comprehensive Income, and
Statement of Financial position as at 31 December.