1. Pelangi Berhad granted 200,000 share appreciation rights to an employee. At the grant date, the company's share price is RM5.00. The share appreciation rights vest over a three-year period. At the end of year 3, the company will pay cash to the employee based on the value of the rights. At the end of year 4, further cash will be paid to the employee. The fair values of the share appreciation rights using an option pricing model are as follows: Year Fair Value (RM) 0 1.34 1 1.58 2 1.92 3 2.20 4 2.62 You are required to prepare the journal entries for the four-year period. Show the working. 2. Comparative balance sheet information as at 30 June for Jauhari Berhad is as follows: Jauhari Berhad Comparative Balance Sheet as at 30 June 2019 (RM) 2020(RM) Cash 49,600 34,400 Accounts Receivable 60,800 67,600 Inventory 99,200 90,800 Land 50,000 20,000 Building 110,000 212,000 Accumulated depreciation - building (68,000) (80,000) Plant and Equipment 32,000 32,000 Accumulated depreciation - plant and equipment (4,000) (8,000) 329,600 368,800 Accounts Payable Accrued Interest Other accrued expenses Mortgage loan payable Share capital Retained profit 48,400 600 7,000 36,000 100,000 137,600 329,600 53,600 200 2,400 53,000 100,000 159,600 368,800 Additional information: i) All purchases and sales of inventories were on credit. ii) Gross profit for the year ended 30 June 2020 was RM128,400 and consisted of sales RM354,800 and cost of sales RM226,400. Net profit for the year ended 30 June 2020 was RM25,000. (Ignore income tax). il) Expenses of RM103,400 include depreciation on buildings and on plant and equipment, a loss on sale, and RM4,000 is interest expense. iv) During the year ended 30 June 2020, the company paid cash dividends to its shareholders. v) Building extensions were paid during the year and a block of land costing RM30,000 was sold for RM25,000 cash. No plant was purchased or sold during the year. Required: Prepare a consolidated cash flow statement for Jauhari Berhad for the year ended 30 June 2020 using the direct method. Show the working
