Tutorial 6: Chapter 6 Accounting for Merchandising BusinessDue date: 12 Nov 2013 (by 4 pm)

From Reeve et al. (2012):1. PR 6-3A (p.298)2. PR 6-4A (p.299)3. PR 6-5A (p. 299)

4. Duo Dinamika Sdn. Bhd. was established by Mr.Sufian on 1 January 2009. The company has been successful, and its list of customers has grown. The company applies perpetual inventory system in recording their daily transactions with credit terms of 2/10, n/30, FOB shipping point. The trial balance of the company contained the following accounts as at 30 November 2012:Duo DinamikaSdn. Bhd.Trial Balanceas at 30 November 2012Debit (RM)Credit (RM)

Cash30,000

Accounts receivable13,000

Merchandise inventory22,000

Prepaid insurance2,000

Store equipment45,000

Accumulated depreciation store equipment12,000

Delivery van60,000

Accumulated depreciation delivery van28,000

Notes payable25,000

Accounts payable18,000

Capital89,000

Total172,000172,000

The following transactions were completed in December 2012:Dec1Purchase merchandise from Jazari Enterprise, RM2,500, FOB shipping point, terms 5/15, n/30. The transportation cost paid, RM200.3Return 40% of the merchandise purchased on 1 December. It was defective.5Sold merchandise to CytronzSdnBhd, RM18,500. The cost of the merchandise, RM7,000. The transportation cost incurred was RM150.6Sold goods for cash, RM900 (Cost, RM500).9Paid advertising expense, RM300.10Made full payment to Jazari Enterprise for purchase on 1 December.12Sold merchandise to Bright Future SdnBhd on credit, listed price, RM20,000, trade discount 15%. The cost of the merchandise, RM8,000.16Received collection in full from CytronzSdnBhd billed on 5 December.29Paid salary expense, RM2,000.31Paid RM15,000 cash for notes payable due.

The annual depreciation for both store equipment and delivery van are RM4,800 and RM5,200.No adjustment has been made during the year. On 1 January 2012, the company has paid in advance, RM2,000 for insurance covering from January to December 2012.No adjustment has been made during the year.

(a) Prepare journal entries for each the transactions (+ adjusting entries).

(b) Prepare the adjusted trial balance as at 31 December 2012.

(c) Prepare the Statement of Comprehensive Income for the year ended 31 December 2012.

(d) Prepare the Statement of Financial Position as at 31 December 2012.