Question
Below is a list of account balances at 31 December 2016 of Suria Bhd, a trading company located in Jitra, Kedah. RM Account receivables 91,382
Below is a list of account balances at 31 December 2016 of Suria Bhd, a trading company located in Jitra, Kedah.
| RM |
Account receivables | 91,382 |
Accounts payable | 30,780 |
Accumulated depreciation buildings | 14,520 |
Accumulated depreciation - equipment | 4,830 |
Buildings | 1,143,900 |
Cash | 1,095,220 |
Cost of goods sold | 713,460 |
Deferred tax liability | 18,000 |
Equipment | 420,000 |
Gain on revaluation of properties | 24,700 |
Gain on sale of land | 91,300 |
Gain on translation of foreign operations | 4,900 |
Patent | 50,230 |
Inventory | 459,958 |
Land | 306,444 |
Maintenance and repair expenses | 9,960 |
Notes payable | 162,000 |
Office expense | 11,738 |
Prepaid insurance | 48,000 |
Property tax expense | 1,400 |
Rent revenue | 48,000 |
Retained earnings | 760,600 |
Revaluation reserve | 467,200 |
Salaries and wages expenses | 21,112 |
Sales returns and allowance | 980 |
Sales revenue | 1,865,150 |
Share capital | 732,304 |
Translation of foreign operations reserve | 219,300 |
Additional information:
1. Payment for one-year insurance coverage was made on 1 October 2016.
2. The company received cash RM25,000 from customers on 30 December 2016 and recorded it as sales revenue. However, the company only managed to supply the merchandise on 5 January 2017.
3. A tenant of office space has not yet paid a rental for December 2016 amounting to RM3,500.
4. An unpaid salary and wages as of 31 December 2016 is RM12,000.
5. The company returned defective merchandise bought from the supplier and received a full cash refund. The cost of the merchandise returned is RM1,500. This transaction is not yet recorded.
6. Annual depreciation for building and equipment are RM3,240 and RM2,500 respectively.
7. 25% of the notes payable is due next year. The note payable interest rate is 8% per annum.
8. Income tax expense for 2016 is RM69,800.
9. No dividend has been declared.
REQUIRED:
- Journalize the adjusting entries on 31 December 2016.
- Prepare a Statement of Profit or Loss and Other Comprehensive Income for Suria Bhd for the year ended 31 December 2016 according to MFRS 101 Presentation of Financial Statement.
- Prepare a Statement of Financial Position for Suria Bhd as at 31 December 2016 according to MFRS 101 Presentation of Financial Statement.
so I've done the adjusting entries just left with the (b) and (c), so I also have attached the answer for your reference. I need answers for b and c. thank you in advance
Date Debit (RM) Credit (RM) 12000 12000 25000 25000 3500 3500 12000 12000 Adjusting Entries Account Particulars Dec-31 Insurance Expenses (48000/12*3) Prepaid Insurance (To record insurance expenses) Dec-31 Sales Revenue Unearned Revenue (To record unearned revenue) Dec-31 Rent Receivable Rent Revenue (To record rent revenue) Dec-31 Wages Expense Wages Payable (To record wages expenses) Dec-31 Cash Returned merchandise (To record cash refund) Dec-31 Depreciation Expense - Building Accumulated Depreciation - Building (To record depreciation expense) Dec-31 Depreciation Expense - Equipment Accumulated Depreciation - Equipment (To record depreciation expense) Dec-31 Interest Expense (162000*8%) Interest Payable (To record interest payable) Dec-31 Income Tax Expense Income Tax Payable (To record income taxes expense) 1500 1500 3240 3240 2500 2500 12960 12960 69800 69800Step by Step Solution
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