Part A - Answer all questions Question 1 (40 marks) The followings is the Trial Balance of Walma Berhad for the year ended 31 December 2017. Walma Berhad Trial Balance as at 31 December 2017 RM'000 RM'OOD Sales & Purchase 13,500.00 75,300.00 Rent income 13,600.00 Administrative expenses 8,530.00 Other operating expenses 665.00 Miscellaneous expense 15.00 Advertisement and marketing expenses 210.00 Finance cost 35.00 Dividend (Interim for preference) 50.00 Property, plant and equipment at cost - 1 Jan, 2017: Land 11,000.00 Building 125,000.00 Motor vehicles 210,000.00 Accumulated depreciation - 1 Jan, 2017 Building 29,291.00 Motor vehicles 49,209.00 Investments properties 23,235.00 Other long-term investments 50,000.00 Inventory - 1 Jan, 2017 650.00 Account receivables 1,750.00 Allowance for doubtful debts 12.00 Prepayments 62.00 Other receivables 305.00 Cash in hand 65.00 Bank 3,235.00 Tax expense (paid) 1,650.00 Fixed deposit 1,800.00 Share capital 62,500.00 Retained earnings 214,919.00 Long-term loan 6,420.00 Account payables 21 1.00 Other short-term payables 260.00 Accruals 35.00Accruals 35.00 451,757 451,757 ACT3113 ACCOUNTING AND REPORTING I SEM 1 2017/2018 Additional information: (i) The company's policy on its property, plant and equipment other than land is to be depreciated them as follows: Property, plant and equipment Depreciation method Rate Building Reducing balance method 5% Motor Vehicles Straight-line method 10% The company charged depreciation of all its depreciable property, plant and equipment according to the months they are disposed and acquired. All properties, plants and equipment will be presented in the financial statement as one Property, Plant and Equipment item. (ii) Share capital of the company consists of the followings: Ordinary Shares . Issued and fully paid up as at 31 December 2017: 12,000,000 units at issue price of RM5 each. During the financial year ending 31 December 2017, the company has issued 2,000,000 units of new shares at RM5 each. 6% Preference Shares . Issued and fully paid up as at 31 December 2017: 100,000 units at issue price of RM25 each. (ii) Year-end stocktake shows inventory at cost of RM700,000. Included in the inventory was a batch of inventory at the cost of RM45,000 that was damaged due to leaking in the warehouse. This batch can only be sold at RM55,000 with new packaging that will cost RM12,400. (iv) The fixed deposit is for 24 months in a local bank. The deposit was made on 1 July 2017. (v) As at 31 December 2017, the followings were discovered: 1. Other operating expenses include repair and maintenance cost for the warehouse. At the end of December 2017, RM14,000 worth of maintenance cost paid in cash has not been recorded yet.2. Administrative expense includes wages and salary expense. Claims for overtime by administrative personnel for the month of December 2017 amounted to RM15,000 has not been paid yet. This unpaid amount will be presented as part of accruals. 3. Included in the rent income is a payment made by an office tenant who paid RM60,000 rent in June 2017 for a year worth of rent until 31 May 2018. 4. A debt that was written off a year ago, amounted to RM5,000, had been repaid by the debtor. Another customer who owed the company RM21,000 has been declared bankrupt thus will not be able to pay for his debt. These transactions have not been recorded yet. 5. On 1 December 2017, the company made a purchase of a new office building of RM1,500,000. The purchase was made through financing from Maybank Islamic Berhad, ACT3113 ACCOUNTING AND REPORTING I SEM 1 2017/2018 with a down payment of RM500,000. First instalment will be made in February 2018. This purchase has not been recorded yet. 6. Included in the long-term loan is a loan by CIMB Islamic Berhad amounted to RM3,000,000 at the end of December 2016. The financing would be settled within ten years, where total settlement will be at RM3,300,000. Monthly instalment starts in January 2017 and payment for December 2017 has not been made yet. 7. During the company's AGM held in December 2017, a dividend of 15 sen for every outstanding ordinary share and final dividend for preference share has been approved by the members, thus declared. Shares issued within the year are not qualified for the dividend. At the end of the financial year, these dividend have not been paid yet. 8. A cheque from a customer for a credit sales made earlier in 2017 amounted to RM8,600 was deposited in the company's bank correctly but recorded by the account clerk as RM6,800. 9. The company estimates its doubtful debt at the end of every financial year base on the age of its account receivables. It was estimated that 5% of the total account receivables balance will be uncollectible in the year to come. Bad debt expense is presented as part of other operating expense. 10. The company's tax expense for the financial year ending 31 December 2017 is calculated to be RM1,800,000.be RM1,800,000. 11. Depreciation for the company's Property, Plant and Equipment is calculated at the end of the financial year and it will be part of other operating expenses. The current year's depreciation has not been charged yet. 12. The Board of Directors have decided to set aside RM25,000,000 from Retained Eamings as General Reserve. This has not been recorded yet. Required: a) Prepare a Statement of Profit or Loss and Other Comprehensive Income for Walma Berhad the year ending 31 December 2017. (11 marks) a) Prepare the Statement of Changes in Equity for Walma Berhad for the year ending 31 December 2017. (7 marks) b) Prepare a Statement of Financial Position for Walma Berhad as at 31 December 2017. (16 marks) CJ Show the notes to the accounts for Property, Plant and Equipment of Walma Berhad for the year ending 31 December 2017. (6 marks)