Hi, help me answer these questions by tomorrow morning. Question A & C only. Chapter PPE, Financial Accounting Reporting 2. I have attached some samples on how we usually calculate the interest capitalization. So it's just for your reference as this question is a bit tricky, also I have highlighted some main points like the period and so on. For the intangible assets, there is 2 assets, which is patent and and purchase sales order. So for question C) must calculate both the intangible assets & prepare journal entry. Thank youu.

Sample for calculating interest capitalization:

is it clear now? Question A & C only. For C must calculate for both intangible assets. patent & sales order purchase. And can please provide the answers as soon as possible.

Buy-N-Buy Bhd (BNB) is an e-business that was established on 1 July 2017 and has recently listed on main board of Bursa Malaysia. The company closes its accounts on 30 June each year and the schedule below is a partial statement of financial position of the company as at the financial year- end 2019 Freehold land Warehouse Accumulated depreciation - Warehouse Equipment Accumulated depreciation - Equipment Patent Accumulated amortization - Patent Accumulated impairment loss - Patent RM 3,000,000 2,000,000 (200,000) 350,000 (105,000) 600.000 (240.000) (50.000) Additional information: 1) BNB decided to construct a new office building on 1 May 2019 and the construction is expected to complete on 31 December 2020. The company obtained a 3-year term loan of RM300,000 with 5% interest rate from Mavi Bank on August 2019 to finance the construction of the office building. The following expenditures were incurred during the construction period: Date RM 1 May 2019 100,000 1 June 2019 120.000 30 September 2019 150.000 4 February 2020 50,000 28 June 2020 80,000 12 November 2020 90,000 In addition, BNB has an outstanding loan, 6%, 5-year note payable of RM500,000, dated 1 October 2017 2) On 1 January 2020, BNB purchased a new equipment at a cost of RM200,000 to replace an old equipment which was purchased when the company was firstly established. The book value of the old equipment on this date was RM56,000. The company chose to dispose the old equipment and net-off the cost of the new equipment against the one-off subsidy of RM50,000 awarded by the government. government grant Cintangibles asset) 3) On 1 December 2019, BNB purchased an online sales order control computer package for RM100,000 from Ercel-Com. Included in the purchase price is a maintenance service of 3 years for RM3.000 each year. BNB employed the services of a consultant to install and test the software for RM2.000. the patent to be RM250,000 and the fair values less cost to sell will be RM245.000. The useful 4) On 30 June 2020, BNB determines the present value of cash flows expected from the useful ) life of the patent following the impairment test on 30 June 2019 is 4 years, 5) The accounting policies related to the depreciation of the assets are as follows: Warehouse 5% Equipment 15% 6) Amortisation is recognised on a straight-line basis over the estimated useful lives of intangible assets of 5 years from the date that they are available for use. REQUIRED: (Round your answer to the whole number) Calculate the amount of interest to be capitalised for the financial years 2019 und 2020. (b) Prepare the journal entries to record the replacement and depreciation of the equipment on 1 January 2020 (e) Prepare the journal entries related to the intangible assets for the financial year 2020. Show all the workings, PPE Queste 1 Collate www.wl of whest to be capituled in 2016 and prepare portal wwwy Cost of land Main cott 101. od 13.500 meh 195.500 Architect fees Permits RM35,000 91 S000 berpality trade RM 35,000 113.500 WARE 30 Dube Attual Expedies Cuphetic WAAE Deriod 5/45 ya 18.500 3 mese include 735.900 92.000 190,000 16 000 20.000 499.900 12 10 50 b/ LOOD 48506 15 SIDES 228.639 Actual Test 10 in Perled Atul la Deet 00.000 RW 000 Specific Du - AS Avoidale Lot R 598.615 X 8 - 14,040 (WARE om to pilised 3015 = 219090 Clownt) Journal Entry: Date RM Details (193,000+ 2.500) RM 135,500 Land Cash 135,500 Building (35,000+ 3000) 100.0 38,000 Cash 38,000 Building (capitalised) Interest expense (remaining) Cash (total avoidablel actual) 19,090 4,910 24,000 * Building 316 400 Cash 316 400 Buy-N-Buy Bhd (BNB) is an e-business that was established on 1 July 2017 and has recently listed on main board of Bursa Malaysia. The company closes its accounts on 30 June each year and the schedule below is a partial statement of financial position of the company as at the financial year- end 2019. Freehold land Warehouse Accumulated depreciation - Warehouse Equipment Accumulated depreciation - Equipment Patent Accumulated amortization - Patent Accumulated impairment loss - Patent RM 3,000,000 2,000,000 (200,000) 350,000 (105.000) 600.000 (240.000) (50,000) Additional information: 1) BNB decided to construct a new office building on May 2019 and the construction is expected to complete on 31 December 2020. The company obtained a 3-year term loan of RM300,000 with 5% interest rate from Mavi Bank on August 2019 to finance the construction of the office building. The following expenditures were incurred during the construction period: Date 1 May 2019 1 June 2019 30 September 2019 4 February 2020 28 June 2020 12 November 2020 RM 100.000 120,000 150,000 50,000 80,000 90,000 In addition, BNB has an outstanding loan, 6%, 5-year note payable of RM500,000, dated 1 October 2017 2) On 1 January 2020. BNB purchased a new equipment at a cost of RM200,000 to replace an old equipment which was purchased when the company was firstly established. The book value of the old equipment on this date was RM56,000. The company chose to dispose the old equipment and net-off the cost of the new equipment against the one-off subsidy of RM50,000 awarded by the government. yovernment grant Cintangibles asset) 3) On 1 December 2019. BNB purchased an online sales order control computer package for RM100,000 from Ercel-Com. Included in the purchase price is a maintenance service of 3 years for RM3,000 each year. BNB employed the services of a consultant to install and test the software for RM2,000. 1 Gintangible asset) 4) On 30 June 2020, BNB determines the present value of cash flows expected from the use of the patent to be RM250,000 and the fair values less cost to sell will be RM245,000. The useful life of the patent following the impairment test on 30 June 2019 is 4 years. 5) The accounting policies related to the depreciation of the assets are as follows: . Warehouse 59 Equipment 15% 6) Amortissition is recognised on a straight-line basis over the estimated useful lives of intangible assets of 5 years from the date that they are available for use. REQUIRED: (Round your answer to the whole number) Calculate the amount of interest to be capitalised for the financial years 2019 and 2020. (6) Prepare the journal entries to record the replacement and depreciation of the equipment on 1 January 2020. Prepare the journal entries related to the intangible assets for the financial year 2020. Show all the workings. Buy-N-Buy Bhd (BNB) is an e-business that was established on 1 July 2017 and has recently listed on main board of Bursa Malaysia. The company closes its accounts on 30 June each year and the schedule below is a partial statement of financial position of the company as at the financial year- end 2019 Freehold land Warehouse Accumulated depreciation - Warehouse Equipment Accumulated depreciation - Equipment Patent Accumulated amortization - Patent Accumulated impairment loss - Patent RM 3,000,000 2,000,000 (200,000) 350,000 (105,000) 600.000 (240.000) (50.000) Additional information: 1) BNB decided to construct a new office building on 1 May 2019 and the construction is expected to complete on 31 December 2020. The company obtained a 3-year term loan of RM300,000 with 5% interest rate from Mavi Bank on August 2019 to finance the construction of the office building. The following expenditures were incurred during the construction period: Date RM 1 May 2019 100,000 1 June 2019 120.000 30 September 2019 150.000 4 February 2020 50,000 28 June 2020 80,000 12 November 2020 90,000 In addition, BNB has an outstanding loan, 6%, 5-year note payable of RM500,000, dated 1 October 2017 2) On 1 January 2020, BNB purchased a new equipment at a cost of RM200,000 to replace an old equipment which was purchased when the company was firstly established. The book value of the old equipment on this date was RM56,000. The company chose to dispose the old equipment and net-off the cost of the new equipment against the one-off subsidy of RM50,000 awarded by the government. government grant Cintangibles asset) 3) On 1 December 2019, BNB purchased an online sales order control computer package for RM100,000 from Ercel-Com. Included in the purchase price is a maintenance service of 3 years for RM3.000 each year. BNB employed the services of a consultant to install and test the software for RM2.000. the patent to be RM250,000 and the fair values less cost to sell will be RM245.000. The useful 4) On 30 June 2020, BNB determines the present value of cash flows expected from the useful ) life of the patent following the impairment test on 30 June 2019 is 4 years, 5) The accounting policies related to the depreciation of the assets are as follows: Warehouse 5% Equipment 15% 6) Amortisation is recognised on a straight-line basis over the estimated useful lives of intangible assets of 5 years from the date that they are available for use. REQUIRED: (Round your answer to the whole number) Calculate the amount of interest to be capitalised for the financial years 2019 und 2020. (b) Prepare the journal entries to record the replacement and depreciation of the equipment on 1 January 2020 (e) Prepare the journal entries related to the intangible assets for the financial year 2020. Show all the workings, PPE Queste 1 Collate www.wl of whest to be capituled in 2016 and prepare portal wwwy Cost of land Main cott 101. od 13.500 meh 195.500 Architect fees Permits RM35,000 91 S000 berpality trade RM 35,000 113.500 WARE 30 Dube Attual Expedies Cuphetic WAAE Deriod 5/45 ya 18.500 3 mese include 735.900 92.000 190,000 16 000 20.000 499.900 12 10 50 b/ LOOD 48506 15 SIDES 228.639 Actual Test 10 in Perled Atul la Deet 00.000 RW 000 Specific Du - AS Avoidale Lot R 598.615 X 8 - 14,040 (WARE om to pilised 3015 = 219090 Clownt) Journal Entry: Date RM Details (193,000+ 2.500) RM 135,500 Land Cash 135,500 Building (35,000+ 3000) 100.0 38,000 Cash 38,000 Building (capitalised) Interest expense (remaining) Cash (total avoidablel actual) 19,090 4,910 24,000 * Building 316 400 Cash 316 400 Buy-N-Buy Bhd (BNB) is an e-business that was established on 1 July 2017 and has recently listed on main board of Bursa Malaysia. The company closes its accounts on 30 June each year and the schedule below is a partial statement of financial position of the company as at the financial year- end 2019. Freehold land Warehouse Accumulated depreciation - Warehouse Equipment Accumulated depreciation - Equipment Patent Accumulated amortization - Patent Accumulated impairment loss - Patent RM 3,000,000 2,000,000 (200,000) 350,000 (105.000) 600.000 (240.000) (50,000) Additional information: 1) BNB decided to construct a new office building on May 2019 and the construction is expected to complete on 31 December 2020. The company obtained a 3-year term loan of RM300,000 with 5% interest rate from Mavi Bank on August 2019 to finance the construction of the office building. The following expenditures were incurred during the construction period: Date 1 May 2019 1 June 2019 30 September 2019 4 February 2020 28 June 2020 12 November 2020 RM 100.000 120,000 150,000 50,000 80,000 90,000 In addition, BNB has an outstanding loan, 6%, 5-year note payable of RM500,000, dated 1 October 2017 2) On 1 January 2020. BNB purchased a new equipment at a cost of RM200,000 to replace an old equipment which was purchased when the company was firstly established. The book value of the old equipment on this date was RM56,000. The company chose to dispose the old equipment and net-off the cost of the new equipment against the one-off subsidy of RM50,000 awarded by the government. yovernment grant Cintangibles asset) 3) On 1 December 2019. BNB purchased an online sales order control computer package for RM100,000 from Ercel-Com. Included in the purchase price is a maintenance service of 3 years for RM3,000 each year. BNB employed the services of a consultant to install and test the software for RM2,000. 1 Gintangible asset) 4) On 30 June 2020, BNB determines the present value of cash flows expected from the use of the patent to be RM250,000 and the fair values less cost to sell will be RM245,000. The useful life of the patent following the impairment test on 30 June 2019 is 4 years. 5) The accounting policies related to the depreciation of the assets are as follows: . Warehouse 59 Equipment 15% 6) Amortissition is recognised on a straight-line basis over the estimated useful lives of intangible assets of 5 years from the date that they are available for use. REQUIRED: (Round your answer to the whole number) Calculate the amount of interest to be capitalised for the financial years 2019 and 2020. (6) Prepare the journal entries to record the replacement and depreciation of the equipment on 1 January 2020. Prepare the journal entries related to the intangible assets for the financial year 2020. Show all the workings