CIA$1003$

Soalan$/$Question $1$

Pengawal kewangan $BJ$ Berhad $(BJ),$ Encik Merlin telah meminta anda menyediakan satu set penyata kewangan yang lengkap untuk BJ Berhad bagi tahun berakhir $30$ Jun $2023.$ Merlin menyerahkan Penyatthe financial controller of BJ Berhad $($BJ$),$ Mr$.$ Merlin has asked you to prepare a complete set of financial statements for BJ Berhad for the year ended $30$ June $2023.$ Mr$.$ Merlin handed you the Statement of Financial Position and Income Statement of BJ Berhad for the year ended $30$ June $2023,$ and he told you that the statements are incomplete because some transactions were not recorded by the former accountant.

After examining the accounts of BJ Berhad, you found that the following transactions were not taken into account in the preparation of financial statements.

On $1$ July $2022,$ BJ issued RM$1,000,000$ of $8\%$ term bonds, due on $1$ July $2027$ with interest payable each $1$ January and $30$ June. Since the investors required an effective interest rate of $10\%,$ they paid RM$922,780$ for the RM$1,000,000$ of bonds, creating a RM $77,220$ discount.

Besides bonds, on $7$ July $2022,$ BJ also issued one million preference shares for RM$1$ each, and each preference shareholder was entitled to a cumulative dividend of $5\%$ annually. The preference shares are redeemable for cash at the option of the preference shareholder.

It cannot be denied that the Covid$-19$ pandemic has had a negative impact on the company. On $20$ May $2023,$ the board of directors decided to close the fashion accessories division. A detailed plan to close this division was finalized on $1$ June $2023.$ Customers were informed about the closure of the division, advising them to find alternative sources of supply. Termination notices were also sent to the employees of the division. BJ estimates that it may incur restructuring costs of RM$150,000.$

Undeniably, the Covid$-19$ pandemic has badly affected the company. On $20$ May $2023,$ the board of directors decided to close down a division making fashion accessories. A detailed plan for closing down the division was finalised on $1$ June $2023.$ Customers have been informed about the closure of the division, advising them to seek an alternative source of supply. The termination notices were also sent to the staff of the division. BJ estimates that is probable that it will have RM$150,000$ in restructuring costs

In May $2023,$ BJ was sued for damages arising from an accident that involved the company's vehicle. On $29$ June $2023,$ the company's lawyers advised that it was probable that the company would lose the case and would have to pay a damage amounting to RM$250,000.$ However, the vehicle was insured and it is virtually certain the company could recover RM$200,000$ from the insurance company

On $10$ February $2023,$ BJ declared a cash dividend to all its shareholders $($ordinary and preference$),$ payable on $30$ June $2023.$ Ordinary shareholders are entitled to $20$ cents a share

The question asks you to prepare the following for BJ Berhad for the year ended $30$ June $2023$:

a$)$ Journal entries for all unrecorded transactions. Show all relevant workings or schedules.

b$)$ Income Statement. Show all workings. Ignore income tax.

c$)$ Statement of Financial Position. Show all workings.