Below is a list of account balances at 31 December 2016 of Suria Bhd, a trading company located in Jitra, Kedah. RM Account receivables 91,382 Accounts payable 30,780 Accumulated depreciation – buildings 14,520 Accumulated depreciation - equipment 4,830 Buildings 1,143,900 Cash 1,095,220 Cost of goods sold 713,460 Deferred tax liability 18,000 Equipment 420,000 Gain on revaluation of properties 24,700 Gain on sale of land 91,300 Gain on translation of foreign operations 4,900 Patent 50,230 Inventory 459,958 Land 306,444 Maintenance and repair expenses 9,960 Notes payable 162,000 Office expense 11,738 Prepaid insurance 48,000 Property tax expense 1,400 Rent revenue 48,000 Retained earnings 760,600 Revaluation reserve 467,200 Salaries and wages expenses 21,112 Sales returns and allowance 980 Sales revenue 1,865,150 Share capital 732,304 Translation of foreign operations reserve 219,300 Additional information: Payment for one-year insurance coverage was made on 1 October 2016. The company received cash RM25,000 from customers on 30 December 2016 and recorded it as sales revenue. However, the company only managed to supply the merchandise on 5 January 2017. A tenant of office space has not yet paid a rental for December 2016 amounting to RM3,500. An unpaid salary and wages as of 31 December 2016 is RM12,000. The company returned defective merchandise bought from the supplier and received a full cash refund. The cost of the merchandise returned is RM1,500. This transaction is not yet recorded. Annual depreciation for building and equipment are RM3,240 and RM2,500 respectively. 25% of the note’s payable is due next year. The note payable interest rate is 8% per annum. Income tax expense for 2016 is RM69,800. No dividend has been declared. REQUIRED: a. Journalize the adjusting entries on 31 December 2016. b. Prepare a Statement of Profit or Loss and Other Comprehensive Income for Suria Bhd for the year ended 31 December 2016 according to MFRS 101 Presentation of Financial Statement. c. Prepare a Statement of Financial Position for Suria Bhd as at 31 December 2016 according to MFRS 101 Presentation of Financial Statement. so I've done the adjusting entries just left with the (b) and (c), so I also have attached the answer for your reference. I need answers for b and c. thank you in advance
Reporting Cash Flows
Reporting of cash flows means a statement of cash flow which is a financial statement. A cash flow statement is prepared by gathering all the data regarding inflows and outflows of a company. The cash flow statement includes cash inflows and outflows from various activities such as operating, financing, and investment. Reporting this statement is important because it is the main financial statement of the company.
Balance Sheet
A balance sheet is an integral part of the set of financial statements of an organization that reports the assets, liabilities, equity (shareholding) capital, other short and long-term debts, along with other related items. A balance sheet is one of the most critical measures of the financial performance and position of the company, and as the name suggests, the statement must balance the assets against the liabilities and equity. The assets are what the company owns, and the liabilities represent what the company owes. Equity represents the amount invested in the business, either by the promoters of the company or by external shareholders. The total assets must match total liabilities plus equity.
Financial Statements
Financial statements are written records of an organization which provide a true and real picture of business activities. It shows the financial position and the operating performance of the company. It is prepared at the end of every financial cycle. It includes three main components that are balance sheet, income statement and cash flow statement.
Owner's Capital
Before we begin to understand what Owner’s capital is and what Equity financing is to an organization, it is important to understand some basic accounting terminologies. A double-entry bookkeeping system Normal account balances are those which are expected to have either a debit balance or a credit balance, depending on the nature of the account. An asset account will have a debit balance as normal balance because an asset is a debit account. Similarly, a liability account will have the normal balance as a credit balance because it is amount owed, representing a credit account. Equity is also said to have a credit balance as its normal balance. However, sometimes the normal balances may be reversed, often due to incorrect journal or posting entries or other accounting/ clerical errors.
Below is a list of account balances at 31 December 2016 of Suria Bhd, a trading company located in Jitra, Kedah.
|
RM |
|
|
|
91,382 |
|
Accounts payable |
30,780 |
|
|
14,520 |
|
Accumulated depreciation - equipment |
4,830 |
|
Buildings |
1,143,900 |
|
Cash |
1,095,220 |
|
Cost of goods sold |
713,460 |
|
|
18,000 |
|
Equipment |
420,000 |
|
Gain on revaluation of properties |
24,700 |
|
Gain on sale of land |
91,300 |
|
Gain on translation of foreign operations |
4,900 |
|
Patent |
50,230 |
|
Inventory |
459,958 |
|
Land |
306,444 |
|
Maintenance and repair expenses |
9,960 |
|
Notes payable |
162,000 |
|
Office expense |
11,738 |
|
Prepaid insurance |
48,000 |
|
Property tax expense |
1,400 |
|
Rent revenue |
48,000 |
|
|
760,600 |
|
Revaluation reserve |
467,200 |
|
Salaries and wages expenses |
21,112 |
|
Sales returns and allowance |
980 |
|
Sales revenue |
1,865,150 |
|
Share capital |
732,304 |
|
Translation of foreign operations reserve |
219,300 |
Additional information:
- Payment for one-year insurance coverage was made on 1 October 2016.
- The company received cash RM25,000 from customers on 30 December 2016 and recorded it as sales revenue. However, the company only managed to supply the merchandise on 5 January 2017.
- A tenant of office space has not yet paid a rental for December 2016 amounting to RM3,500.
- An unpaid salary and wages as of 31 December 2016 is RM12,000.
- The company returned defective merchandise bought from the supplier and received a full cash refund. The cost of the merchandise returned is RM1,500. This transaction is not yet recorded.
- Annual depreciation for building and equipment are RM3,240 and RM2,500 respectively.
- 25% of the note’s payable is due next year. The note payable interest rate is 8% per annum.
- Income tax expense for 2016 is RM69,800.
- No dividend has been declared.
REQUIRED:
a. Journalize the
b. Prepare a Statement of Profit or Loss and Other Comprehensive Income for Suria Bhd for the year ended 31 December 2016 according to MFRS 101 Presentation of Financial Statement.
c. Prepare a Statement of Financial Position for Suria Bhd as at 31 December 2016 according to MFRS 101 Presentation of Financial Statement.
so I've done the adjusting entries just left with the (b) and (c), so I also have attached the answer for your reference. I need answers for b and c. thank you in advance
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