Prepare an Income Statement for the month of August 2009.


Question Description:

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Ah Tong opened a boat hire business; Ah Tong Sdn. Bhd. in August 2009. The following transactions occurred during the first month of the business. August. 1 Ah Tong invested RM15,000 in cash in the business. 3 Paid RM590 for August rent of premises. 4 Purchased equipment costing RM7,000 with a cash for RM3,000 and a RM4,000 commercial loan from Hong Leong Bank. 5 Purchased supplies costing RM250 on credit. 15 Recorded revenue for the first half of the month of RM1,530 in cash and RM70 on credit. 18 Paid for supplies purchased on 5 th August 2009, RM250. 19 Paid insurance expense for August of RM190. 24 Received payment from customer on account of RM40. 29 Recorded revenue for the second half of the month of RM1,330 in cash and RM60 on credit. 30 Paid telephone expense of RM60 in cash. Instructions: (a) Prepare general journal entries to record the transactions. (b) Prepare a Trial Balance as at 31 August 2009. (a) Prepare an Income Statement for the month of August 2009. (b) Prepare a Balance Sheet as at August 31, 2009.

Answer

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