Additional information: 1. Closing inventory at 31 December 2021 was valued at RM98,000. 2 Salaries paid in advance to three employees for RM4,500 each has been recognised as an expense on 31 December 2021. 3. Supplies that was purchased in 2021 has been wrongly recognised as supplies expense. At 31 December 2021, it was found that the balance of supplies was RM13,350. 4. A utility bill for RM1,050 has not been recorded and will not be paid until January 2022. 5. Import duty of the goods purchased from Australia amounting to RM7,950 has been paid in 2021, however the bookkeeper has not recorded it yet in the relevant accounts. 6. The company purchase fire insurance for the building amounting to RM72,000 on 1 April 2021. The insurance is valid for one year. 7. Depreciation is to be charged as follows: Motor Vehicles 20% on straight line method Machinery 10% on reducing balance method. Building 5% on straight line method 8. Allowance for doubtful accounts amounting to 2% of account receivable has to be provided. 9. The balance of the interest on loan has not been paid for the year. Required: a) Prepare the statement of profit or loss for the year ended 31 December 2021. b) Prepare the retained earnings statement for the year ended 31 December 2021. c) Prepare the statement of financial position as at 31 December 2021
Additional information:
1. Closing inventory at 31 December 2021 was valued at RM98,000.
2
Salaries paid in advance to three employees for RM4,500 each has been recognised as an
expense on 31 December 2021.
3.
Supplies that was purchased in 2021 has been wrongly recognised as supplies expense. At
31 December 2021, it was found that the balance of supplies was RM13,350.
4.
A utility bill for RM1,050 has not been recorded and will not be paid until January 2022.
5. Import duty of the goods purchased from Australia amounting to RM7,950 has been paid
in 2021, however the bookkeeper has not recorded it yet in the relevant accounts.
6.
The company purchase fire insurance for the building amounting to RM72,000 on 1 April
2021. The insurance is valid for one year.
7.
Motor Vehicles
20% on
Machinery
10% on
Building
5% on straight line method
8. Allowance for doubtful accounts amounting to 2% of
provided.
9. The balance of the interest on loan has not been paid for the year.
Required:
a) Prepare the statement of profit or loss for the year ended 31 December 2021.
b) Prepare the
c) Prepare the statement of financial position as at 31 December 2021
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