2 of 7 QUESTION Part A Answer each of the following independent questions . Identify the accounting standards sets by the Intemational Accounting Standard Board (1.5 marks) 2. Financial and management aocounting information are reported and communicated to LASB) and lists the TWO (2) measurement principles used by the standards. briefly explain the uses of accounting information to their decision making. 3. Identify any TWO (2) limitations of a Trial Balance 4. Lists the THREE (3) basic steps in the recording process. two different types of users. For each type of user, provide a specific example and (3 marks) (2 marks) (1.5 marks) Part B Presented below is a Statement of Financial Position for Quick Laundry Service as at 31 December 2017. QUICK LAUNDRY SERVICE Statement of Financial Position As at 31 December 2017 (RM) Cash Accounts receivable Laundry supplies Prepaid Insarance Equipenent 12,000 Liabilities 3,500 Accounts payable 4,800 Notes payable 2,800 3,500 40,000 46.300 21,000 Share capital ordinary Total assets Total equity &liabilities 46300 The following additional data occurred for the year 2017: All expenses (excluding laundry supplies expense and insurance expense) were RM4,500. Laundry supplies as at January were RM2,000 and RM6,100 were purchased daring the year. Prepaid Insurance as a1 January was RM3,000 and RM9.500 were purchased during the year. Net income for the year was RM7,200 Based on above information, caleulate the following amount for the year 2017. Show all workings. (a) Laundry supplies expense. (b) Insurance expense for the year. (2 marks) (2 marks) 3 of 7 (c) Total expenses for the year (d) Service revenues for the year. (2 marks) (2 marks) Part C Pretty Please Bhd, newly commenced its business and occurred the following transactions for the month of October 2017 . The oompany issues ordinary shares in exchange for RM80,000 cash. 2. Purchased land costing RM50,000 for cash. 3. Purchased equipment costing RM30,000 on credit by signing a 30-day, notes payable 4Purchased supplies on account for RM1,500 5 Received RM4,000 cash for future service to be performed 6. Pald RM1,500 for a one-year insarance policy. 7. Performod services to client on account amounted RM6,000 8. Paid salaries to employees for RM2,500 9. Paid dividends ofRM1,000. Journalize the above transactions. You may omit journal explanations (9 marks) TOTAL 25 MARKS QUESTON2 Part A Home Deco Bhd. commenced business on 1 January 2017. At the end of the first 6 months of operation, the Trial Balance contained the following accounts balances Cash Accounts receivable 7,300 2,100 3,000 4,000 15,000 Accounts payable Notes payable Unearned service revenue Share capital-ordinary 11,000 8,500 15,000 Prepaid insurance Advertising expense Rent expense Utilities expense Analysis reveals the following additional data 4 of 7 1. A count of supplies shows RM1,200 of supplies still on hand as at 30 June 2017 2. Prepaid insurance is a one-year insurance policy starting 1 January 2017. .Annual depreciation is RM3,000 on oquipment 4 The note payable was issued on 1 March 2017. It is a 5%, 6-mcith note. 5. RM2,500 of the balance in the Unearned Service Revenue account remain uncarnod as at 30 June 2017 (a) Journalize the adjusting entries that were made for the first 6 months of operation (7.5 marks) (10.5 marks) Show all workings (b) Prepare the Adjusted Trial Balance as at 30 June 2017 Part B Ronald Bhd. prepares the following comparative statements of Financial Position as at 31 December 2017 RONALD BERHAD Statement of Financial Positicn at 31 December 2017 32,000 75,000 180,000 20,000 75,000 28,000 Cash Accounts receivable 25,000 75,000 Accumulated depreciation-Buildings Total 367,000 375,500 29,500 146,000 200,000 367,000 ,00 Accounts payable Retained carnings Share capital-ordinary 32,000 115,000 Total Ronald's 2017 income statement included net sales of RM395,000, cost of goods sold of RM275,000, and net income of RM35,000 (a) Caleulate the following ratios for the year 2017. Show all formulas and workings i. Current ratio ii. Asset turnover ii. Asset turnover 5 of 7 ii Debt to assets ratio (6 marks) Thcre are three financial ratio classifications namely liquidity, profitability and (I marks) solvency. Briefly explain the concept of liquidity ratio. TOTAL 2S MARKS QUESTIONS Part A Kennedy Bhd reports the following costs and expenses in May. (RM 15,500 Direct labor Factory utilities Depreciation on factory eqaipment 12,450 Office miscellaneous expense Depreciation on delivery trucks3,800 Indirect factory labor Indirect materials Direct materials used Factory manager's salary (RM) 78,200 48,400 2100 Property taxes on factory building 2.500 1,300 1,300 2,000 20,000 4,650 Sales salaries Office insurance expense 46,700 Repairs to office equipment 70,500 Factory repairs 135,400 Advertising expense 6,500 Office supplies used Based on above information, calculate ) Manufacturing overhcad. (b) Product costs. (c) Period costs. (4 marks) (2 marks) (4 marks) Part B In the moath of September, Maurioe Bhd sold 500 units of product. The average sales price was RM40. During the month, fixed costs ware RMS,200 and variable costs were 5096 ofsales. (a) Determine the contribution margin in dollars, per unit, and as a ratic. (6 marks) (b) Using the contribution margin technique, compute the break-even point in dollars and (4 marks) in units. 6 of7 Part C Basod on cost behavior conoept, identify the corect answer for each of the following 1. The amount of revenue remaining after deducting variable costs. 2. The percentage of sales dollars available to cover foxed costs and produce income . The difference between actual or expected sales and sales at the break-even point 4Costs that vary in total directly and proportionately with changes in the activity level 5. The level of activity at which total revenues equal total costs (5 marks) TOTAL 25 MARKS Part A Paradelle Bhd ended its fiscal year as at 30 June 2017. The company's adjusted Trial Balance at the end of its fiscal year is as foliow PARADELLE BERHAD Trial Balance (Adjusted) RM 15,200 8,400 Accounts receivable 3,600 3,200 Notes payable Accounts payable Uncarned service revenue Share capital-ordinary Retained earnings 2,100 25,000 27,700 Service revenue Deprociation expense Salaries and wages expense Utilities expense 0,000 3,600 12,000 46,000 09,200 Based on the above information (a) Prepare the closing entries (5 marks) (b) Prepare the Post-Closing Trial Balance as at 30 June 2017. (3 marks) 7 of 7 (e) Based on answer in (b), prepare a classified Statement of Financial Position as at 30 June 2017 (5 marks) Part B Bello Bhd occurred the following comparative Statements of Financial Position as at 31 December 2017 and 2016. Bello's net income for 2017 was RM205,000. Depreciation expense was RM29,000. BELLO BERHAD Comparative Statement of Financial Position 31 December 16 RM) (RM) Current Assets: Cash Accounts receivable Inventory Prepaid expenses 1,600 31,200 54,000 39,400 25,100 66,000 600 137,100 Total current assets 140,000 Current Liabilities: Accounts payable Accrued expense payable 14,300 27,700 30,000 Total current liabilities (a) Prepare the net cash provided by operating activities section of the company's Statement of Cash Flows for the year ended 31 December2017, using indirect (5 marks) (b) Provide any TWO (2) usefulness of information in a Statement of Cash Flows to (2 marks) method interested users. (c) Other than cash activities, a company may also have non-cash activities List THREE (3) significant non-cash activitios (3 marks) TOTAL 25 MARKS) End of Page