Majdah Sdn Bhd prepares financial statements to 31 December each year. On 1 July 2022,Majdah Holding Sdn Bhd began to lease a machine. The lease gave the company the soleright to direct the use of the machine and receive all the economic benefits arising from its use.The lease was for a five-year term, with annual rentals of RM200,000 being payable inadvance.The first rental was paid in 1 July 2022 and the final rental is due for payment on 1 July 2026.The total estimated useful life of the machine on 1 July 2022 was ten years. There are no termsin the lease agreement that allow the lease to be extended beyond the five-year term. Theannual rate of interest implicit in the lease is 8%.8% discount factors are as follows.Year123452Cumulative present value of RM10.9261.78832.5773.3123.993Required:Prepare the extracted Statement of Financial Position at as 31 December 2022. Shows all theworkings.

Name: Majdah Sdn Bhd prepares financial statements to 31 December each year
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Description: Majdah Sdn Bhd prepares financial statements to 31 December each year. On 1 July 2022,Majdah Holding Sdn Bhd began to lease a machine. The lease gave the company the soleright to direct the use of the machine and receive all the economic benefits ar

The lease liability is calculated by discounting the lease payments using the interest rate implicit…

Answered: Required: Prepare the extracted…

Business

Accounting

Required: Prepare the extracted Statement of Financial Position at as 31 December 2022. Shows all the workings.

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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Concept explainers

Financial Transaction Analysis

The transaction analysis is done with the help of the accounting equation. The basic accounting equation is alternatively known as the balance sheet equation is based on the double-entry system which says that for each transaction happening in a business, at least two accounts should be affected I.e. both the debit side and the credit side should be equal. The Accounting Equation is

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Question

Majdah Sdn Bhd prepares financial statements to 31 December each year. On 1 July 2022,
Majdah Holding Sdn Bhd began to lease a machine. The lease gave the company the sole
right to direct the use of the machine and receive all the economic benefits arising from its use.
The lease was for a five-year term, with annual rentals of RM200,000 being payable in
advance.
The first rental was paid in 1 July 2022 and the final rental is due for payment on 1 July 2026.
The total estimated useful life of the machine on 1 July 2022 was ten years. There are no terms
in the lease agreement that allow the lease to be extended beyond the five-year term. The
annual rate of interest implicit in the lease is 8%.
8% discount factors are as follows.
Year
1
2345
2
Cumulative present value of RM1
0.926
1.7883
2.577
3.312
3.993
Required:
Prepare the extracted Statement of Financial Position at as 31 December 2022. Shows all the
workings.

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