16 OCTOBER 2020 BAC 1614 FUNDAMENTALS OF FINANCIAL ACCOUNTING QUESTION 1 Brother Berhad is a consultation business that provide consultation serviee regarding accounting treatment. The following balances have been extracted them the books of Brother Berhad as at 31 December 2020 Debit (RM) Credit (RM) Consultation service 425,000 Salaries expenses 125,000 Advertising expenses 7,000 Prepaid insurance 27,000 Entertainment expenses 7,875 Utilities charges 3,750 Rental and maintenance 27,000 Miscellaneous expenses 58,000 Share capital-ordinary 800,000 Supplies 105,000 Transportation cost 24,000 Investments 200,000 Land 500,000 Copyrights 54,000 Building 325,000 Furniture and Fixtures 65,000 Accumulated Depreciation: Building 58,500 Furniture and Fixtures 13,000 5% Loan from CIMB 300,000 Cash 58,000 Account receivable 65,000 Account payable 40,000 Dividend 80,000 Retained earnings, 1 Jan 95,125 1,731,625 1,731,625 Additional information: 1. Interest on loan is not yet paid for the year. The CIMB loan is sign on 1 April 2020, and the loan will mature in 5 years. 2. Acquired a copyright on 1 January 2020. The copyright has a useful life of 40 years. Con Depreciation was to be providedi Building 2% of straight lihe method. Furniture and Fixtures 10% on traight liple method. Total utilities charge for the year is RM4,000. Supplies balance on 31 December 2020 was RM35,000. Insurance paid on 1 July 2020 for twelve-month coverage. 7.) Consultation service completed but not billed with amount RM25,000. 8. Including in the trial balance are RM3,000 rental and maintenance paid for January 2021. Required: a) Prepare the statement of profit or loss for the year ended 31 December 2020. (12 marks) b) Prepare the retained earnings statement for the year ended 31 December 2020. (4 marks) c) Prepare the statement of financial position as at 31 December 2020. (9 marks) [Total 25 marks] QUESTION 2 16 OCTOBER 2020 BAC 1614 FUNDAMENTALS OF FINANCIAL ACCOUNTING QUESTION 1 Brother Berhad is a consultation business that provide consultation serviee regarding accounting treatment. The following balances have been extracted them the books of Brother Berhad as at 31 December 2020 Debit (RM) Credit (RM) Consultation service 425,000 Salaries expenses 125,000 Advertising expenses 7,000 Prepaid insurance 27,000 Entertainment expenses 7,875 Utilities charges 3,750 Rental and maintenance 27,000 Miscellaneous expenses 58,000 Share capital-ordinary 800,000 Supplies 105,000 Transportation cost 24,000 Investments 200,000 Land 500,000 Copyrights 54,000 Building 325,000 Furniture and Fixtures 65,000 Accumulated Depreciation: Building 58,500 Furniture and Fixtures 13,000 5% Loan from CIMB 300,000 Cash 58,000 Account receivable 65,000 Account payable 40,000 Dividend 80,000 Retained earnings, 1 Jan 95,125 1,731,625 1,731,625 Additional information: 1. Interest on loan is not yet paid for the year. The CIMB loan is sign on 1 April 2020, and the loan will mature in 5 years. 2. Acquired a copyright on 1 January 2020. The copyright has a useful life of 40 years. Con Depreciation was to be providedi Building 2% of straight lihe method. Furniture and Fixtures 10% on traight liple method. Total utilities charge for the year is RM4,000. Supplies balance on 31 December 2020 was RM35,000. Insurance paid on 1 July 2020 for twelve-month coverage. 7.) Consultation service completed but not billed with amount RM25,000. 8. Including in the trial balance are RM3,000 rental and maintenance paid for January 2021. Required: a) Prepare the statement of profit or loss for the year ended 31 December 2020. (12 marks) b) Prepare the retained earnings statement for the year ended 31 December 2020. (4 marks) c) Prepare the statement of financial position as at 31 December 2020. (9 marks) [Total 25 marks] QUESTION 2