INSTRUCTION: This section consists of TWO (2) structured question. Answer ALL questions. QUESTION 1 On 1 January 2020, Bliss Bhd signed a non-cancellable lease contract to lease a machine for a lease term of three years. Annual lease payment of RM60,000 payable in arrears at the end of each year. At the commencement date of the lease, the interest rate implicit in the lease at 5% per annum. Fees in relation to the preparation of lease contract amounted to RM4,605. Present value of lease payments amounted to RM163,395. The company closes its accounts on 31 December each year. Required: (a) Fill in the following lease liability table with correct figures from 2020 to 2022 (round up the interest expense to the nearest RM). Carrying Years amount b/f (RM) Carrying amount c/f Interest Instalment (RM) (RM) (RM) 2020 2021 2022 (b) Prepare the journal entries to record the initial measurement, interest charge, instalment payment and depreciation of right of use asset in the financial year 2020 (first year only). (c) Prepare the extracted statement of financial position on 31 December 2020.

INSTRUCTION: This section consists of TWO (2) structured question. Answer ALL questions. QUESTION 1 On 1 January 2020, Bliss Bhd signed a non-cancellable lease contract to lease a machine for a lease term of three years. Annual lease payment of RM60,000 payable in arrears at the end of each year. At the commencement date of the lease, the interest rate implicit in the lease at 5% per annum. Fees in relation to the preparation of lease contract amounted to RM4,605. Present value of lease payments amounted to RM163,395. The company closes its accounts on 31 December each year. Required: (a) Fill in the following lease liability table with correct figures from 2020 to 2022 (round up the interest expense to the nearest RM). Carrying Years amount b/f (RM) Carrying amount c/f Interest Instalment (RM) (RM) (RM) 2020 2021 2022 (b) Prepare the journal entries to record the initial measurement, interest charge, instalment payment and depreciation of right of use asset in the financial year 2020 (first year only). (c) Prepare the extracted statement of financial position on 31 December 2020.

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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