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QUESTION 2 (35 MARKS) Cinnamon Berhad has an authorised capital of RM700,000 divided into 400,000 ordinary shares of RM1 each and 300,000 12% preference shares of RM1 each. The accountant of the company is preparing publish financial statements for the year ended 30 June 2015 The following information is given: Trial balance as at 30 June 2015 Debit (RM) Credit (RM) Issued and fully paid up capital: Ordinary shares capital Preference share capital 300,000 150,000 Revaluation reserve 60,000 35,000 Retained profit Share premium July 2014) 10% Debentures Investment Frechold land (revalued 320,000 176,000 25,500 Building (cost) Office equipment (cost) Accumulated depreciation (1 July 2014) 16,000 Building 4,500 Office equipment Inventories (30 June 2015) Trade receivables 20,000 55,000 Trade payables Bank 39,900 723,850 Sales 400,000 Cost of sales Income from investments Discount received 36,000 Directors emoluments Auditors fee Selling and distribution expenses Administrative expenses Interim dividend paid Debenture interest paid Tax paid 14,000 39,000 80,000 8,250 30,000 Under provision of prior year's tas 1,568,650 1,568,650 Additional information 1. Depreciation for the year have not been provided yet, the depreciation rates are as follows 5% at cost (70 percent is charged to administrative cost and i 30 percent to distribution cost) | 5% at net book value Building Office equipments Provision is required for the following items: 2. i. Debenture interest for second half year ii. Accrued sales commission of RM5,000 ii. Prepaid rental of RM3,200 3. The directors have decided on the followings: i. Declared a final dividend for preference shares, and ii. Declared ordinary shares dividend at 7%. ii. Incorporate the value of surplus in revaluation of freehold land. The land was revalued amounted to RM330,000 4. On 30 June 2015, the company issued bonus shares of 30,000 to existing ordinary sharcholders. The company utilized premium account for the purpose of bonus issue. (This transaction has not bren reeorded and no divided should be provided for bonus issue). 5. Included in interim dividend paid is interim preference dividend amounted to RM6,000. Tax expense for the year is RM48,000. 6. Required: a. Prepare ended 30 June 2015 a Statement of Comprebensive Income of Cinnamon Berhad for the year (33 marks) Prepare a Statement of Financial Position of Cinnamon Berhad as at 30 June 2015 (70.5 marks) c. Prepare a Statement of Changes in Equity of Cimnamon Berhad for the year ended 30 June 2015 (7 mark) Prepare notes to the accounts for the followings: i. Earnings per share ii. Property, plant and equipment d. (4.5marks) QUESTION 2 (35 MARKS) Cinnamon Berhad has an authorised capital of RM700,000 divided into 400,000 ordinary shares of RM1 each and 300,000 12% preference shares of RM1 each. The accountant of the company is preparing publish financial statements for the year ended 30 June 2015 The following information is given: Trial balance as at 30 June 2015 Debit (RM) Credit (RM) Issued and fully paid up capital: Ordinary shares capital Preference share capital 300,000 150,000 Revaluation reserve 60,000 35,000 Retained profit Share premium July 2014) 10% Debentures Investment Frechold land (revalued 320,000 176,000 25,500 Building (cost) Office equipment (cost) Accumulated depreciation (1 July 2014) 16,000 Building 4,500 Office equipment Inventories (30 June 2015) Trade receivables 20,000 55,000 Trade payables Bank 39,900 723,850 Sales 400,000 Cost of sales Income from investments Discount received 36,000 Directors emoluments Auditors fee Selling and distribution expenses Administrative expenses Interim dividend paid Debenture interest paid Tax paid 14,000 39,000 80,000 8,250 30,000 Under provision of prior year's tas 1,568,650 1,568,650 Additional information 1. Depreciation for the year have not been provided yet, the depreciation rates are as follows 5% at cost (70 percent is charged to administrative cost and i 30 percent to distribution cost) | 5% at net book value Building Office equipments Provision is required for the following items: 2. i. Debenture interest for second half year ii. Accrued sales commission of RM5,000 ii. Prepaid rental of RM3,200 3. The directors have decided on the followings: i. Declared a final dividend for preference shares, and ii. Declared ordinary shares dividend at 7%. ii. Incorporate the value of surplus in revaluation of freehold land. The land was revalued amounted to RM330,000 4. On 30 June 2015, the company issued bonus shares of 30,000 to existing ordinary sharcholders. The company utilized premium account for the purpose of bonus issue. (This transaction has not bren reeorded and no divided should be provided for bonus issue). 5. Included in interim dividend paid is interim preference dividend amounted to RM6,000. Tax expense for the year is RM48,000. 6. Required: a. Prepare ended 30 June 2015 a Statement of Comprebensive Income of Cinnamon Berhad for the year (33 marks) Prepare a Statement of Financial Position of Cinnamon Berhad as at 30 June 2015 (70.5 marks) c. Prepare a Statement of Changes in Equity of Cimnamon Berhad for the year ended 30 June 2015 (7 mark) Prepare notes to the accounts for the followings: i. Earnings per share ii. Property, plant and equipment d. (4.5marks)