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
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ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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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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