Please help me with A only
The trial balance of Melvin Manufacturing Sdn Bhd (MMSB) as at 31 December 2017 is listed as follows: Trial Balance as at 31 December 2017 Descriptions Debit Credit RM'000 RM'000 Rental 100 30 Investment income 28 Inventory (1 Jan 2017) 15 Trade receivables and payables 110 80 Investment in quoted shares 50 Purchases and Sales 360 820 Administrative expenses 106 Selling and distribution expenses 108 Advertisement 10 Plant and machinery at cost 350 Building at cost 650 Freehold land at cost 110 Accumulated depreciation 1 Jan 2017 Plant and machinery 100 Building 110 Provision for doubtful debts 5 Cash at bank 102 Directors' remuneration 40 Legal fees 10 Audit fees 10 Ordinary shares of RM1 each 300 8% Preference shares of RM1 each 100 Share premium 50 Revaluation reserve 10 Fair value change (reserve) 5 Retained profit 1 Jan 2017 32 10% debentures, repayable in 10 years 300 Interest 15 10 Interim dividends paid - Ordinary Shares 20 Interim dividends paid - Preference Shares 4 Tax expenses paid 30 Suspense accounts 220 2,200 2,200Other information: 1. A physical inventory check reveals inventory at cost of RM115,000 as at 31 December 2017. Ten products were damaged during transit. The cost of these products were RM20.000. Due to the damage, the selling price was reduced to RM5,000. 2. Prepaid expenses: Administration RM6.000 and Selling and distribution expenses RM3,000. Accrued expenses: Transportation charges RM10,000 and Legal fees RM2,000. Debenture interest for the second half-year has not been provided. 3. Provision for doubtful debts of 6% is to be made after writing off RM10,000 as bad debts. 4. Depreciation charges on cost: (i) Building 4% - charged to administrative expenses. (ii) Plant and machinery 10% - charged to cost of sales. 5. MMSB's management decided to revalue the freehold land to its current value, RM115,000. 6. The tax expenses for the year was RM25,000. The amount shown in the trial balance is the amount paid for the current year. 7. At the end of the year the company issued 100,000 ordinary shares at a premium. The proceeds were recorded in the suspense accounts. 8. MMSB declared a final dividend of RM10,000 for the ordinary shareholders as well as the preference shareholders for the current year during their Annual General Meeting (AGM). 9. On 1 November 2017, MMSB sold its investment in quoted shares for RM70,000. The cash received from the sales were properly recorded. However, the other journals were transferred to suspense accounts. Required: a) Prepare MMSB's Statement of Profit or Loss and Other Comprehensive Income for the year ended 31 December 2017. Show all your workings through notes. b) Prepare MMSB's Statement of Financial Position as at 31 December 2017