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BKARIO13 FINANCIAL ACCOUNTING AND REPORTING I Additional information: 1. No depreciation has been charged for the year. The company policy is to charge a full year's depreciation on all assets held at the year-end at the following rates: Office Building - 4% per annum on cost Equipment -5% per annum on cost Motor vehicle – 10% per annum on cost 2. Commission to salesmen is paid on net income for 2020 are announced to be RM62,500. The annual payment will be made on 1 March 2021. 3. A note payable of RM100,000 was issued on 1 December 2020 at 9% per year. Interest is paid quarterly. The transaction has been recorded except for accrued interest. 25% of the notes are due next year. 4. It is estimated that the provision for doubtful debts for the year is RM5,000. 5. At the end of the year 2020, RM6,250 of unearned revenue was earned. The revenue earned has not been recorded. 6. Supplies expenses for the year are RM10,000 and have not been recorded. 7. On 28 December 2020 the company purchased merchandise on account at a price of RM15,000. The transaction has not been recorded as at 31 December 2020. REQUIRED: (a) Journalise the adjusting entries on 31 December 2020. (You may omit the explanation) (b) Prepare a Statement of Profit or Loss and Other Comprehensive Income for PBB for the year ended 31 December 2020 according to MFRS 101 Presentation of Financial Statements. (c) Prepare a Statement of Financial Position for PBB as at 31 December 2020 according to MFRS 101 Presentation of Financial Statements.

BKARIO13 FINANCIAL ACCOUNTING AND REPORTING I Additional information: 1. No depreciation has been charged for the year. The company policy is to charge a full year's depreciation on all assets held at the year-end at the following rates: Office Building - 4% per annum on cost Equipment -5% per annum on cost Motor vehicle – 10% per annum on cost 2. Commission to salesmen is paid on net income for 2020 are announced to be RM62,500. The annual payment will be made on 1 March 2021. 3. A note payable of RM100,000 was issued on 1 December 2020 at 9% per year. Interest is paid quarterly. The transaction has been recorded except for accrued interest. 25% of the notes are due next year. 4. It is estimated that the provision for doubtful debts for the year is RM5,000. 5. At the end of the year 2020, RM6,250 of unearned revenue was earned. The revenue earned has not been recorded. 6. Supplies expenses for the year are RM10,000 and have not been recorded. 7. On 28 December 2020 the company purchased merchandise on account at a price of RM15,000. The transaction has not been recorded as at 31 December 2020. REQUIRED: (a) Journalise the adjusting entries on 31 December 2020. (You may omit the explanation) (b) Prepare a Statement of Profit or Loss and Other Comprehensive Income for PBB for the year ended 31 December 2020 according to MFRS 101 Presentation of Financial Statements. (c) Prepare a Statement of Financial Position for PBB as at 31 December 2020 according to MFRS 101 Presentation of Financial Statements.

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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BKARI013 FINANCIAL ACCOUNTING AND REPORTING I Additional information: 1. No depreciation has been charged for the year. The company policy is to charge a full year's depreciation on all assets held at the year-end at the following rates: Office Building - 4% per annum on cost Equipment -5% per annum on cost Motor vehicle – 10% per annum on cost 2. Commission to salesmen is paid on net income for 2020 are announced to be RM62,500. The annual payment will be made on 1 March 2021. 3. A note payable of RM100,000 was issued on 1 December 2020 at 9% per year. Interest is paid quarterly. The transaction has been recorded except for accrued interest. 25% of the notes are due next year. 4. It is estimated that the provision for doubtful debts for the year is RM5,000. 5. At the end of the year 2020, RM6,250 of unearned revenue was earned. The revenue earned has not been recorded. 6. Supplies expenses for the year are RM10,000 and have not been recorded. 7. On 28 December 2020 the company purchased merchandise on account at a price of RM15,000. The transaction has not been recorded as at 31 December 2020. REQUIRED: (a) Journalise the adjusting entries on 31 December 2020. (You may omit the explanation) (b) Prepare a Statement of Profit or Loss and Other Comprehensive Income for PBB for the year ended 31 December 2020 according to MFRS 101 Presentation of Financial Statements. (c) Prepare a Statement of Financial Position for PBB as at 31 December 2020 according to MFRS 101 Presentation of Financial Statements. 6
Transcribed Image Text:BKARI013 FINANCIAL ACCOUNTING AND REPORTING I Additional information: 1. No depreciation has been charged for the year. The company policy is to charge a full year's depreciation on all assets held at the year-end at the following rates: Office Building - 4% per annum on cost Equipment -5% per annum on cost Motor vehicle – 10% per annum on cost 2. Commission to salesmen is paid on net income for 2020 are announced to be RM62,500. The annual payment will be made on 1 March 2021. 3. A note payable of RM100,000 was issued on 1 December 2020 at 9% per year. Interest is paid quarterly. The transaction has been recorded except for accrued interest. 25% of the notes are due next year. 4. It is estimated that the provision for doubtful debts for the year is RM5,000. 5. At the end of the year 2020, RM6,250 of unearned revenue was earned. The revenue earned has not been recorded. 6. Supplies expenses for the year are RM10,000 and have not been recorded. 7. On 28 December 2020 the company purchased merchandise on account at a price of RM15,000. The transaction has not been recorded as at 31 December 2020. REQUIRED: (a) Journalise the adjusting entries on 31 December 2020. (You may omit the explanation) (b) Prepare a Statement of Profit or Loss and Other Comprehensive Income for PBB for the year ended 31 December 2020 according to MFRS 101 Presentation of Financial Statements. (c) Prepare a Statement of Financial Position for PBB as at 31 December 2020 according to MFRS 101 Presentation of Financial Statements. 6
BKARI013 FINANCIAL ACCOUNTING AND REPORTING I QUESTION 3 A. Presented below is the trial balance for Pedu Belantik Bhd (PBB) as at 31 December 2020: Accounts Debit (RM) Credit (RM) Land 156,250 Office building Equipment Motor vehicle Accumulated depreciation: - Office building - Equipment 193,750 25,000 68,750 65,000 10,000 26,250 - Motor vehicle Bank 137,500 Trade receivables Supplies Prepaid insurance Long term investment Goodwill 172,500 18,750 38,250 201,875 50,000 Inventory 56,500 375,000 25,000 206,250 Ordinary share capital Reserves Retained earnings 71,875 675,000 Rent revenue Sales Gain on revaluation of properties 11,250 12,500 6,250 Gain on sale of land Gain on translation of foreign operations Cost of goods sold Salary and wages expenses Finance cost Distribution expenses Advertising expenses Other operating expenses 280,000 142,500 25,000 25.625 15,625 15,000 Income tax expense 17,750 Notes payable Dividend payable Trade payables 100,000 18,750 12,500 25,000 1,640,625 Unearned revenue 1,640,625 5
Transcribed Image Text:BKARI013 FINANCIAL ACCOUNTING AND REPORTING I QUESTION 3 A. Presented below is the trial balance for Pedu Belantik Bhd (PBB) as at 31 December 2020: Accounts Debit (RM) Credit (RM) Land 156,250 Office building Equipment Motor vehicle Accumulated depreciation: - Office building - Equipment 193,750 25,000 68,750 65,000 10,000 26,250 - Motor vehicle Bank 137,500 Trade receivables Supplies Prepaid insurance Long term investment Goodwill 172,500 18,750 38,250 201,875 50,000 Inventory 56,500 375,000 25,000 206,250 Ordinary share capital Reserves Retained earnings 71,875 675,000 Rent revenue Sales Gain on revaluation of properties 11,250 12,500 6,250 Gain on sale of land Gain on translation of foreign operations Cost of goods sold Salary and wages expenses Finance cost Distribution expenses Advertising expenses Other operating expenses 280,000 142,500 25,000 25.625 15,625 15,000 Income tax expense 17,750 Notes payable Dividend payable Trade payables 100,000 18,750 12,500 25,000 1,640,625 Unearned revenue 1,640,625 5
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