Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

kindly please help me to solve these question..thank you! QUESTION 1 The following balances were extracted from the books of the Emper Bhd as at

kindly please help me to solve these question..thank you!

image text in transcribedimage text in transcribed
QUESTION 1 The following balances were extracted from the books of the Emper Bhd as at 31 October 2020: Debit Credit RM'000 RM'000 Ordinary shares 140,000 5% preference shares 12,000 General reserve 10,000 Retained profits (1 November 2019) 31,200 8% debentures 12,000 Trade payables 7,500 Trade receivables 16,200 Land 20,800 Buildings (at cost) 25,600 Plant and machinery (at cost) 28,400 Accumulated depreciation (1 November 2019): Buildings 5,120 Plant and machinery 14,200 Inventory 18,250 Bank 132,400 Sales 130,700 Cost of sales 60,700 Administration expenses 29,900 Selling and distribution expenses 6,900 Finance expenses 1,680 Patent and trademark 25,000 Directors remuneration 3,000 Deferred tax 900 Dividend income 560 Dividend paid (inclusive preference shares) 7,750 Retirement benefit (1 November 2019) 2,300 366,580 366,580 Additional Information: 1 . As at 31 October 2020, the company has of 140,000,000 units ordinary shares and 12,000,000 units 5% preference shares. 2. Land is not depreciated. For the depreciable assets, the depreciation for the year is to be provided as follows: Buildings - 5% on cost Plant and machinery - 10% on cost 3. On 1 April 2020, the company acquired 62,500 units of shares in Sentosa Bhd. The price paid for shares acquired was RM105,000 (inclusive RM5,000 brokerage fees). The shares were to be classified as held for trading. The transaction and changes in fair value has yet to be recorded by the company. Details of relevant share price were as follows: Date RM 1 April 2020 1.60 30 June 2020 2.5031 October 2020 3.20 4. Emper Bho operates a funded defined benefit plan for its employees. As at 1 November 2019, the present value of the defined benefit obligation and the fair value of the plan assets were RM60,500,000 and RM58,200,000 respectively. For the year ended 30 October 2020 the following information is given: The discount rate that reflected yields of high-quality corporate bonds was 10%. ii. Based on actuarial valuation, the current service cost was RM5,200,000. ili. Cost for improving existing plan amounting to RM3,500,000. iv . Contributions paid to the fund for the year totaled RM3,600,000. V. Benefits paid to retired employees were RM6,000,000. vi. The expected return on plan assets for the year was 12%. As at 30 October 2020, the present value of the defined benefit obligation was RM65,640,000 and the fair value of the plan assets on this date was RM63,680,000. 5. In November 2019, Emper Bho acquired an equipment valued at RM300,000. The terms of the agreement allow the company to pay for the equipment either in terms of cash equivalent to the market value of 160,000 ordinary shares on 1 February 2020 or by the issue of 200,000 ordinary shares at market value on 1 March 2020. The equipment was received by the company on 1 January 2020. The market value of the company's ordinary shares for the month of January and February 2020 were RM2.50 and RM2.80 respectively. In previous years, when the company acquired property, plant and equipment under similar terms and conditions as the above, it settled the acquisition by cash. This transaction has yet to be recorded by the company. Depreciation of the equipment is 5% on cost, yearly basis. For taxation purposes, the equipment is entitled to a 10% initial allowance and a 5% annual allowance. 6. On 1 August 2020, Emper Bhd made a right issue of two (2) new ordinary shares for every ten (10) ordinary shares held at a price of RM3.00 per share. Market value of the ordinary shares before the rights issue was RM4.20. This transaction has yet to be recorded by the company. 7. 12,000,000 5% preference shares of RM 1 each were issued on 1 September 2020. 8. As at 31 October 2020, taxable temporary differences and deductible temporary differences for all assets and liabilities in the statement of financial position (before adjustments) were RM8,000,000 and RM3,800,000 respectively. 9. The current and future tax is estimated to remain at 25% Required: Prepare the following financial statements in a form suitable for publication: a) Statement of profit or loss and other comprehensive income for the year 31 October 2020. (determine the basic earnings per share) b) Statement of changes in equity for the year ended 31 October 2020. c) Statement of financial position as at 31 October 2020. Show all necessary workings

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Financial Accounting

Authors: Carl Warren

13th Edition

1133607616, 978-1133607618

More Books

Students also viewed these Accounting questions