QUESTION 1 Presented below is the trial balance for Kota Bertuah Bhd (KBB) as at 31...
Fantastic news! We've Found the answer you've been seeking!
Question:
Transcribed Image Text:
QUESTION 1 Presented below is the trial balance for Kota Bertuah Bhd (KBB) as at 31 December 2022: Accounts Bank Debit (RM) Credit (RM) 550,000 Trade receivables 690,000 Supplies 75,000 Prepaid insurance 153,000 Long term investment 807,500 Goodwill 200,000 Inventory 226,000 Land 625,000 Office building 775,000 Equipment 100,000 275,000 260,000 Motor vehicle Accumulated depreciation: - Office building - Equipment - Motor vehicle Ordinary share capital Reserves Retained earnings Rent revenue Sales Gain on revaluation of properties 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 40,000 105,000 1,500,000 100,000 825,000 287,500 2,700,000 45,000 50,000 25,000 1,120,000 570,000 100,000 102,500 62,500 1 Other operating expenses 60,000 Income tax expense 71,000 Notes payable Dividend payable Trade payables 400,000 75,000 50,000 Unearned revenue Additional information: 100,000 6,562,500 6,562,500 1. Supplies expenses for the year is RM40,000 and has not been recorded. 2. On 28 December 2022 the company purchased merchandise on account at a price of RM60,000. The transaction has not been recorded as at 31 December 2022. 3. Commission to salesmen is paid on net income for 2022 are announced to be RM250,000. The annual payment will be made on 1 March 2023. 4. A note payable of RM400,000 which was issued on 1 December 2022 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. 5. It is estimated that the provision for doubtful debts for the year is RM20,000. 6. At the end of the year 2022, RM25,000 of unearned revenue was earned. The revenue earned has not been recorded. 7. 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 REQUIRED: 10% per annum on cost (a) Journalise the adjusting entries on 31 December 2022. (You may omit the explanation) (b) Prepare a Statement of Profit or Loss and Other Comprehensive Income for KBB for the year ended 31 December 2022 according to MFRS 101 Presentation of Financial Statements. (c) Prepare a Statement of Financial Position for KBB as at 31 December 2022 according to MFRS 101 Presentation of Financial Statements. 2 QUESTION 1 Presented below is the trial balance for Kota Bertuah Bhd (KBB) as at 31 December 2022: Accounts Bank Debit (RM) Credit (RM) 550,000 Trade receivables 690,000 Supplies 75,000 Prepaid insurance 153,000 Long term investment 807,500 Goodwill 200,000 Inventory 226,000 Land 625,000 Office building 775,000 Equipment 100,000 275,000 260,000 Motor vehicle Accumulated depreciation: - Office building - Equipment - Motor vehicle Ordinary share capital Reserves Retained earnings Rent revenue Sales Gain on revaluation of properties 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 40,000 105,000 1,500,000 100,000 825,000 287,500 2,700,000 45,000 50,000 25,000 1,120,000 570,000 100,000 102,500 62,500 1 Other operating expenses 60,000 Income tax expense 71,000 Notes payable Dividend payable Trade payables 400,000 75,000 50,000 Unearned revenue Additional information: 100,000 6,562,500 6,562,500 1. Supplies expenses for the year is RM40,000 and has not been recorded. 2. On 28 December 2022 the company purchased merchandise on account at a price of RM60,000. The transaction has not been recorded as at 31 December 2022. 3. Commission to salesmen is paid on net income for 2022 are announced to be RM250,000. The annual payment will be made on 1 March 2023. 4. A note payable of RM400,000 which was issued on 1 December 2022 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. 5. It is estimated that the provision for doubtful debts for the year is RM20,000. 6. At the end of the year 2022, RM25,000 of unearned revenue was earned. The revenue earned has not been recorded. 7. 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 REQUIRED: 10% per annum on cost (a) Journalise the adjusting entries on 31 December 2022. (You may omit the explanation) (b) Prepare a Statement of Profit or Loss and Other Comprehensive Income for KBB for the year ended 31 December 2022 according to MFRS 101 Presentation of Financial Statements. (c) Prepare a Statement of Financial Position for KBB as at 31 December 2022 according to MFRS 101 Presentation of Financial Statements. 2
Expert Answer:
Answer rating: 100% (QA)
ANSWER a Adjusting Entries on 31 December 2022 No Account Debit RM Credit RM 1 Supplies Expenses 400... View the full answer
Related Book For
Intermediate Accounting IFRS
ISBN: 978-1119372936
3rd edition
Authors: Donald E. Kieso, Jerry J. Weygandt, Terry D. Warfield
Posted Date:
Students also viewed these accounting questions
-
Mr Shomoy started his own consulting firm, Tax Consulting, on January 01, 2022. The following transactions occurred during the month of January. Sept.01 Mr Shomoy invested taka 1,50,000 cash in the...
-
Write a C program for the implementation of the Quick Sort Algorithm.
-
The milk plant in a city distributes its products by trucks, loaded at a single loading dock. It has its own fleet plus trucks of a private company. The private company has complained that sometimes...
-
Straus Company operates a small factory in which it manufactures two products: A and B. Production and sales results for last year were as follows: For purposes of simplicity, the firm averages total...
-
A piston compresses air in a cylinder from 20 8 C and 100 kPa to 2 MPa. The final temperature, assuming an ideal gas with constant specific heats, is approximately: (A) 690 C (B) 540 C (C) 490 C (D)...
-
Suggest a method of using the Bode plot of phase angle versus frequency (Fig. 3.11(b)) to identify the natural frequency and the damping ratio of the system.
-
Donna Tse has recently accepted the position of assistant manager at Cycle World, a bicycle store in St. Louis. She has just finished her accounting courses. Cycle Worlds manager and owner, Jeff...
-
Central Banks today all engage in Seignorage to some extent, in that they gain from the issuance of new money, or collect interest on the securities that they hold in doing so. Yet, the Quantity...
-
You have been hired by Gnomeo, Inc., a company that buys and resells miniature garden gnomes. The company started business on January 1, 2019. The chief accountant has asked you to compile a set of...
-
When we use accounting-based valuation models, we always split book equity into its underlying components common stock, additional paid-in capital, and retained earnings. True/ False
-
There are many professional organizations for criminal justice professionals. The Colorado Police Protective Association (www.cppa.net) and the International Police Association (www.ipa-iac.org) are...
-
The Department of Justice is composed of multiple organizations and task. How are these strategic objectives transmitted to these diverse organizations.
-
Describe a historical situation where a failure to assess and correctly interpret the external environment resulted in a business failure. What elements of the external environment were missed? How...
-
Is the current organization of the United States system of Justice suited to produce "fair" outcomes? If so, what components are crucial to ensuring impartiality, justice for all? If not, identify...
-
If they rent, the builder will require monthly rental payments of $1,100 and a security deposit equal to two months of rent. Since they want to be protected against the possible loss of their...
-
What are the stages of intervention with someone who possibly could become violent in an institution? Briefly describe each stage.
-
In the synthesis of the keto acid just given, the dicarboxylic acid decarboxylates in a specific way; it gives Explain. HO rather than HO
-
Presented below are five different situations. Provide an answer to each of these questions. a. The Kawaski Jeep dealership sells both new and used Jeeps. Some of the Jeeps are used for demonstration...
-
Presented below is a list of items that may or may not be reported as inventory in a companys December 31 balance sheet. 1. Goods out on consignment at another companys store. 2. Goods sold on an...
-
Crosley Ltd. sold an investment on an installment basis. The total gain of £60,000 was reported for financial reporting purposes in the period of sale. The company qualifies to use the...
-
What kinds of qualifications might a statute place on someone who is in a dating relationship? What problems might these qualifications pose?
-
What kinds of relationships would qualify for a protective order in an inclusive state?
-
In brief, what is a civil order of protection?
Study smarter with the SolutionInn App