EXERCISE 2 The following balances were taken from the book of Usaha Bhd as at 31 May 2016. Land and buildings Motor vehicles at cost Fixtures and fittings at cost Accumulated depreciation: Motor vehicles DEBIT (RM) 245 000 56 000 35 000 CREDIT (RM) Fixtures and fittings 2 450 17 100 Trade receivable account 159 810 Provision of doubtful debt 2400 Inventory 20 280 Bank overdraft 17 750 Cash in hand 370 Trade payable account 31 272 10% debenture 26 000 100 000 Ordinary shares @RM 0.50 each and fully paid 8% preference shares at RM 1.00 each and fully paid Share premium General reserved Retained earnings Sales Purchases Advertising 268 464 10.500 90 000 35 250 70 000 47 845 468 570. Bad debts General expenses Distribution expenses Debenture interest Directors' remunerations Insurance Rental Tax paid Wages and salaries Interim dividend- Preference shares Ordinary shares 587 2030 15 103 1300 33 600 10 168 11 550 11 675 20 000 2 200 5.000 908 637 908 637 Additional information: 1. Inventories as at 31 May 2016 are valued at RM 37 000 2. Authorized share capital is as follows: 500 000 units of ordinary shares of RM 0.50 each 200 000 units of 8% preference shares of RM 1.00 each 3. Prepaid rental is RM 2000. 4. Provision needs to be made for. Directors remuneration Audit fees Doubtful debts Debenture interest Wages and salaries 5. Depreciation is to be provided as follows: RM 2000 RM 5 600 RM 3 000 RM 1.300 RM 4 200 Motor vehicles Fixtures and fittings 20% per annum on cost 40% on book value 6. The directors, on the advice of an independent appraiser, wish to revalue the land and buildings at RM 600 000 thus bringing the value in line with the current price. 7. The board of directors proposed: i) A dividend of RM 0.03 per shares to be paid on the ordinary shares and the full years' preference dividend ii) An estimated corporate tax of RM 19000 iii) To transfer RM 5 000 to general reserve You are required to prepare: a) Statement of Comprehensive Income for the year ended 31 May 2016 [10 marks] b) Statement of Changes in Equity for the year ended 31 May 2016 c) Statement of Financial Position as at 31 May 2016 [5 marks] [10 marks]