Answered step by step
Verified Expert Solution
Question
...
1 Approved Answer
Part B Luna Sdn Bhd has been in business for several years but did not keep a complete set of books. Mr. Jason, the owner
Part B Luna Sdn Bhd has been in business for several years but did not keep a complete set of books. Mr. Jason, the owner has approached you to assist him in preparing the financial statements for the year ended 31 December 2021. The following is the trial balance extracted from the books of Luna Sdn Bhd Luna Sdn Bhd Trial Balance as at 31 December 2021 Account Debit Credit (RM) (RM) Return Inward and Outward 660 800 Carriage outward 2.500 Drawings 4,400 Allowance for doubtful debts 1,700 Bad debts 2,300 Insurance 2,200 Carriage inward 1.500 Commission received 2,400 Discount allowed 1.000 Discount received 1.200 Motor expenses 1.160 Household expenses 1,600 Salaries 11,000 Utilities 3,180 Interest on loan 1,200 Accounts receivable 23.000 Accounts payable 22.500 Bank 28,000 Loan from CIMB 30,000 Inventory (1"January 2021) 8.250 Purchases 59,000 Sales 124.260 Machinery 65.000 Motor Vehicles 48.000 Accumulated depreciation: Machinery 19,200 Motor Vehicles 9,600 Capital 52.290 Total 263,950 263.950 Through your investigation, you also discovered the following information: Inventory as at 31" December 2021 was RM11,200. You discovered that there is one invoice of RM400 which was overdue for more than a year. Mr. Jason decided to write this off as he considered this as uncollectible. b. C. Depreciation for the year are to be provided as follows: Machinery RM4,580 Motor Vehicles RM4,800 d. Household expenses represent expenses for the owner's personal life, which he didn't know is supposed to be separate from business expenses. Allowance for doubtful debt was to be adjusted to 10% of credit sales RM25,000. f. Insurance expenses were paid by the company for the period of April 2021 to March 2022. The business has the following outstanding expenses at the end of the year: Carriage inwards RM560 Salaries RM700 h. As an effort that you make to help Mr. Jason preparing the financial statement, you are charging accounting fees to the company amounted RM2,000. And this expense has not yet been recorded until at the year end. Required: 1) Prepare Income Statement for the year ended 31 December 2021. (16 marks) 2) Prepare Statement of Financial Position as at 31 December 2021. (15 marks)
![image text in transcribed](https://s3.amazonaws.com/si.experts.images/answers/2024/07/669b9bd228eec_001669b9bd1be77d.jpg)
![image text in transcribed](https://s3.amazonaws.com/si.experts.images/answers/2024/07/669b9bd2c11a7_002669b9bd25fe40.jpg)
Step by Step Solution
There are 3 Steps involved in it
Step: 1
![blur-text-image](https://dsd5zvtm8ll6.cloudfront.net/includes/images/document_product_info/blur-text-image.webp)
Get Instant Access with AI-Powered Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
![blur-text-image](https://dsd5zvtm8ll6.cloudfront.net/includes/images/document_product_info/blur-subtext-image.webp)
Step: 3
![blur-text-image](https://dsd5zvtm8ll6.cloudfront.net/includes/images/document_product_info/blur-subtext-image.webp)
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started