requireda) journalize above transaction 1) to 9) b) Prepare the statement of financial position of Makmur Berhad at 31 December 2019 QUESTION 4Makmur Berhad was formed on 1 January 2009. The company reported the following summarizedStatement of Financial Position:Makmur BerhadStatement of Financial Position as at, 1 January 2019RMAssetsCash400,0001,000,0001,400,000Other assetsTotal assetsLiabilities and EquityEquityOrdinary share cupital, 110,000 issued8% Preference share capital, 70,000 issuedRetained earnings550,000175,000540,0001,265,000LiabilitiesCurrent liabilities135,000Total liabilities and equity1,400,000The following transactions occurred during the year ended 31 December 2019 but have yet to berecorded:1) Obtained a loan amounting RM45,000 from Borneo Bank Berhad at 10% per year on 1February 2019.2) On 1 March 2019, offered right issue to existing ordinary shareholders, with the right topurchase one share for every 2 shares held, at RM3.20. Market price on the date wasRM5.50. All offers were taken up.3) On 1 July 2019, the company issued 10% RM100,000 par value bonds payable forRM96,000. The bonds pay interest on 31 December annually and will mature in ten years.The annual market rate on the date of issue is 12%.4) On 1 August 2019, the company paid interim preference dividend of RM7,000.5) Issued bonus shares (ordinary shares) on 1 September 2019, at a ratio of one for everytwenty shares held. Market value per share was RM6.00. The retained earnings account isutilised for this purpose.6) On 31 December, declared total cash dividend of RM75,000 to both the ordinary andpreference shareholders. The dividend has been approved during the annual generalmeeting and will be paid on 15 January 2020.7) Profit for the year was RM115,000.8) Accrued interest on bank loan at, 31 December 2019.9) Paid interest on bonds payable at, 31 December 2019.

Name: requireda) journalize above transaction 1) to 9) b) Prepare the statem
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Description: requireda) journalize above transaction 1) to 9) b) Prepare the statement of financial position of Makmur Berhad at 31 December 2019 QUESTION 4Makmur Berhad was formed on 1 January 2009. The company reported the following summarizedStatement of Finan

Solution : (1). Journal Entries Date Account Title Debit (in RM) Credit (in RM) 01.02.2019…

Answered: Makmur Berhad was formed on 1 January…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

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required
a) journalize above transaction 1) to 9)
b) Prepare the statement of financial position of Makmur Berhad at 31 December 2019

QUESTION 4
Makmur Berhad was formed on 1 January 2009. The company reported the following summarized
Statement of Financial Position:
Makmur Berhad
Statement of Financial Position as at, 1 January 2019
RM
Assets
Cash
400,000
1,000,000
1,400,000
Other assets
Total assets
Liabilities and Equity
Equity
Ordinary share cupital, 110,000 issued
8% Preference share capital, 70,000 issued
Retained earnings
550,000
175,000
540,000
1,265,000
Liabilities
Current liabilities
135,000
Total liabilities and equity
1,400,000
The following transactions occurred during the year ended 31 December 2019 but have yet to be
recorded:
1) Obtained a loan amounting RM45,000 from Borneo Bank Berhad at 10% per year on 1
February 2019.
2) On 1 March 2019, offered right issue to existing ordinary shareholders, with the right to
purchase one share for every 2 shares held, at RM3.20. Market price on the date was
RM5.50. All offers were taken up.
3) On 1 July 2019, the company issued 10% RM100,000 par value bonds payable for
RM96,000. The bonds pay interest on 31 December annually and will mature in ten years.
The annual market rate on the date of issue is 12%.
4) On 1 August 2019, the company paid interim preference dividend of RM7,000.
5) Issued bonus shares (ordinary shares) on 1 September 2019, at a ratio of one for every
twenty shares held. Market value per share was RM6.00. The retained earnings account is
utilised for this purpose.
6) On 31 December, declared total cash dividend of RM75,000 to both the ordinary and
preference shareholders. The dividend has been approved during the annual general
meeting and will be paid on 15 January 2020.
7) Profit for the year was RM115,000.
8) Accrued interest on bank loan at, 31 December 2019.
9) Paid interest on bonds payable at, 31 December 2019.

Definition Definition Financial statement that provides a snapshot of an organization's financial position at a specific point in time. It summarizes a company's assets, liabilities, and shareholder's equity, detailing what the company owns, what it owes, and what is left over for its owners. The balance sheet serves as a crucial tool to assess the financial health and stability of a company, as well as to help management make informed decisions about its future investments and financial obligations.

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