QUESTION 3

Question

QUESTION 3
The transactions of GB Bhd for the month of December are as follows:

Date (December 2015) Transactions
1 Paid insurance premium of RM10,000 for coverage against losses due to fire for a period of 36 months.

5 Purchased equipment on credit from ROCK Bhd. totalling RM5,000.

23 Paid salary of RM4,500 to temporary staff for the first two weeks of December.

Required:
Prepare the journal entries for all the above transactions. (Total 6 Marks)

Answer 1

Dec-1 Prepaid Insurance 10,000
            Cash                               10,000
Dec-5 Equipment              5,000
            Accounts Payable               5,000
Dec-23 Salary Expense     4,500
            Cash                                 4,500