Answered step by step
Verified Expert Solution
Question
1 Approved Answer
QUESTION 1 Bina Saja Bhd was established in year 2 0 1 0 , with the main office in Bertam Perdana, Seberang Perai. The company
QUESTION
Bina Saja Bhd was established in year with the main office in Bertam Perdana, Seberang Perai. The company involves in real estate activities by buying lands and construct housing properties. The financial year end for the company is December each year. The company uses cost model for property, plant, and equipment PPE and fair value model for its investment property.
The company has a storey building located in Bertam Perdana as its head quarter office. It was purchased in January The cost of the building was RM It is estimated that the building will provide benefits to the company over its useful life of years. On October the management of the company decided to move to a new building in Kulim, Kedah. The storey building in Bertam was then rented out. Only of the building is used for office purposes which was considered insignificant. Based on the professional appraisers valuation, the market value of the building on October was the same as the carrying amount while the market value on December was RM
In April the company acquired a piece of land in Sungai Dua for RM The company keeps the land for capital appreciation. Due to the COVID pandemic, the fair value of the land on December was RM However, the fair value of the land was improved to RM on December
Bina Saja Bhd also has a storey office building in Permatang Pauh and it is rented out to another company. The building was purchased on June The fair value of the building at the end of and were RM and RM In a new city center was developed in Seberang Jaya resulting to the drop in demand for rental lots in the current building. On July the company sold the building at a price of RM
REQUIRED:
Show all workings and round all numbers to the nearest RM
Prepare related journal entries for the storey building in Bertam Perdana for the year
Prepare related journal entries for the land in Sungai Dua for the years and
Prepare related journal entries for the storey building in Permatang Pauh for the years and
Briefly explain the accounting treatment for the following:
a The land in Sungai Dua, if the company decided to build its own office building on the land.
bstorey building in Permatang Pauh if the company decided not to sell, instead it is rented out to the other company which is the member of the same parent company.
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started