Additional Information:

1. Building and land are depreciated over 10 years and no depreciation charge for the current year has been made.

2. On 1 January 2019, the Company purchased machinery worth RM10,000. The depreciation for the current year has not been charged. The useful life of the machinery is 5 years.

3. RM1,500 worth of inventory was destroyed due to mishandling during the year.

4. Payment of Wages amounting to RM900 for a worker which was not recorded before.

5. The Company adopts straight line method on its depreciation and there is no salvage value.

From the information above:

(i) Prepare an Income Statement for the financial year.

(9 marks) (ii) Prepare a Statement of Financial Position (Balance Sheet) for the financial year.

(iii) Journalize the adjustments.

Question 2 The following information is extracted from the trial balance of Chrome Sdn Bhd on 31 Dec 2019: Chrome Sdn Bhd Trial Balance as at 31 December 2019 Credit (RM) Debit (RM) 28,000 Cash Accounts Receivable 23,000 Inventory 40,000 Land (at cost) 50,000 30,000 Building (at cost) Accumulated depreciation - Land Accumulated depreciation - Building Machinery Accounts Payable 5,000 3,000 10.000 20,000 Capital 41,600 180,000 17.000 Sales Administrative Expenses Selling and distribution Expenses Salaries and Wages Transportation Charges 5,600 34,000 12,000 Total 249,600 249,600