Question 1Berkat Enterpise, a trader of electronic appliances inSeremban. The business is owned by Encik Zaid. Thefollowing is the Trial Balance as at 31 December 2020extracted from the general ledgers of Berkat Enterpise:DebitCreditRMRM888,550CapitalLand and buildingMotor vehiclesOffice equipmentAccumulated depreciation:450,000360,000270,00054,00027,000Motor vehicesOffice equipmentAccounts receivable6,700Accounts payableCash in hand9,50036,200Financing from RHB Islamic BankBank overdraftAllowance for doubtful debtInventory as at 1 Jan 2020PurchasesSales70,2006,8001,10011,60071,320127.450Returns1,6002,100Carriage inwardsDiscountsRental received5001,20014,80027,300800Commission receivedSalary expensesRepair and maintenance expenses4,7003,4008502,7507,0001.600StationeryWater and electricityInsurance expensesTelephone expensesBad debts980Total1,230,0001,230,000The following additional information is provided:1. Closing inventory as at 31 December 2020 was valued atRM14,800.2. Telephone bills are accrued by RM230 and insurance ofRM500 prepaid at31 December 2020. 3. The depreciation charges for the year are as follows:AssetMotor vehicles Reducing balance method 15% per annumOffice equipment Straight line methodDepreciation methodDepreciation rate10% per annum4. The allowance for doubtful debts on 31 December 2020is to be decreased by RM300.5. Cash withdrew for personal use was at RM800. Norecord has been made.You are required to prepare:Income for Berjayaa. a Statement of ComprehensiveEnterpise for the year ended 312020December

Name: Question 1Berkat Enterpise, a trader of electronic appliances inSerem
Uploaded: 2024-03-05T11:50:36.000Z
Channel: Bartleby
Description: Question 1Berkat Enterpise, a trader of electronic appliances inSeremban. The business is owned by Encik Zaid. Thefollowing is the Trial Balance as at 31 December 2020extracted from the general ledgers of Berkat Enterpise:DebitCreditRMRM888,550Capit

Statement of Comprehensive Income is the Income statement of any Business Organization which shows…

Business

Accounting

3. The depreciation charges for the year are as follows: Asset Motor vehicles Reducing balance method 15% per annum Office equipment Straight line method Depreciation method Depreciation rate 10% per annum 4. The allowance for doubtful debts on 31 December 2020 is to be decreased by RM300. 5. Cash withdrew for personal use was at RM800. No record has been made. You are required to prepare: a. a Statement of Comprehensive Income for Berjaya Enterpise for the 2020 year ended 31 December

3. The depreciation charges for the year are as follows: Asset Motor vehicles Reducing balance method 15% per annum Office equipment Straight line method Depreciation method Depreciation rate 10% per annum 4. The allowance for doubtful debts on 31 December 2020 is to be decreased by RM300. 5. Cash withdrew for personal use was at RM800. No record has been made. You are required to prepare: a. a Statement of Comprehensive Income for Berjaya Enterpise for the 2020 year ended 31 December

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

See similar textbooks

Similar questions

What is the depreciation tax shield if EBIT is $1,500,000, depreciation expense is $200,000, interest expense is $300,000, and the tax rate is 25%? Do not round intermediate calculations. Round the final answer to 2 decimal places. Omit any commas and the $ sign in your response. For example, an answer of $1,000.50 should be entered as 1000.50.
Why the amount of $35.3million is not used in the calculation of the carrying amount of financial asset? Epsilon prepares financial statements to 31 March each year. The following event has occurred which are relevant to the year ended 31 March 2018: On 1 April 2017, Epsilon loaned $30 million to another entity. Interest of $1·5 million is payable annually in arrears. An additional final payment of $35·3 million is due on 31 March 2020. Epsilon incurred direct costs of $250,000 in arranging this loan. The annual rate of interest implicit in this arrangement is approximately 10%. Epsilon has no intention of assigning this loan to a third party at any time. Required:Explain and show how the three events should be reported in the financial statements of Epsilon for the year ended 31 March 2018. You should assume that Epsilon only measures financial assets at fair value through profit or loss when required to do so by IFRS 9
A property was purchased for $3976.00 down and payments of $1249.00 at the end of every six months for 6 years. Interest is 8% per annum compounded monthly. What was the purchase price of the property? How much is the cost of financing? The purchase price of the property was $ $☐ (Round the final answer to the nearest cent as needed. Round all intermediate values to six decimal places as needed.)
The asset - vehicle worth £21,200 will be depreciated by 10% at the end of the year. Which nominal accounts should be debited and credited, respectively? a) Debit Depreciation A/c & Credit Non-Current Asset A/c b) Debit Inventory A/c & Credit Depreciation A/c c) Debit Balance Sheet A/c & Credit Profit or Loss A/c
Hybrid Dealers bought computer equipment for R54 000 on 1 July 2018. The equipment is depreciated at 20% according to the diminishing balance method. Prepare the depreciation and closing transfer entries in the general journal of Hybrid Dealers on 31 March 2019 and 31 March 2020.
In 2018 an asset was purchased for $2,000,000. The asset qualified for Initial Allowance. The Initial Allowance (I.A) Rate was 20%. Annual Allowance (A.A) Rate was 10%. The asset was sold in 2020 for $1,000,000. Capital allowance is on the reducing balance basis. The balancing adjustment is: a.A Balancing Charge of $260,000 b.A Balancing Allowance of $134,000 c. ABalancing Allowance of $260,000 d. A Balancing charge of $200,000
Prepare the journal entry; to record depreciation expense for 2024. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts. List debit entry before credit entry.) Date
Pertinent information for two alternatives A and B is shown below. If i=10% / year and the effective income tax rate is 35%, answer the following true/false questions. Alt. A Alt.B Basis, $ Gross Income (GI), $ Operating Expense (OE), $ Salvage Value, $ MARCS Depreciation Method O True 150,000 100,000 30,000 O False 225,,000 100,000 10,000 The depreciation charge at the end of year 7 for Alt. A is zero. 15,000 22,500 ADS-6: Years Recovery GDS: 5-Years Recovery Period Period
The company Alumnos Emprendedores S.A. has an investment for a total amountof $175,800.00, and annual net cash flows of $52,050.00, calculate the periodof recovery, detail your result in years, months and days
Hybrid Dealers bought computer equipment for R54 000 on 1 July 2018. Theequipment is depreciated at 20% according to the diminishing balance method.Required:Prepare the depreciation and closing transfer entries in the general journal ofHybrid Dealers on 31 March 2019 and 31 March 2020 respectively.
Journalize and adjust with explanation the following transactions below in balance sheet approach and liability for advances: equipment costing P100,000 was purchased using P40,000 cash. The remaining amount of P60,000 is a one year note with an interest rate of 3.4% compounded monthly Adjustment: Payment for equipment At the end of 5 years the equipment salvage value is P10,000
A property cost P100k with resale value at the end of 7" year of P5k. Determine book value at the end of year 4 using Matheson Method. Select one: a. P18,049.178 b. P18,940.178 c. P49.018.187 d. P45,094.187