QUESTION 1

Karya Berjaya Bhd is a telecommunication company. Below is a list of account balances of the company at 31 December 2019.

Accounts RM

A Account receivables 45,691

Accounts payable 15,390

Accumulated depreciation - buildings 10,500

Accumulated depreciation - equipment 4,915

Allowance for doubtful debts 300

B Bonds payable 250,750

Buildings 571,950

Bad debt expense 300

C Cost of goods sold 356,730

Cash 547,610

D Depreciation expense - building 3,240

Depreciation expense - equipment 2,500

E Equipment 210,000

G Gain on sale of land 45,650

Gain on revaluation of properties 12,350

Goodwill 25,115

I Inventory 229,979

L Land held for future use 67,000

M Maintenance and repair expenses 4,980

N Notes payable 81,000

O Office expense 4,809

P Property tax expense 700

Prepaid insurance 110,222

R Rent revenue 24,000

Retained earnings 380,300

Reserve 352,250

S Sales revenue 934,675

Sales discounts 2,100

Sales returns and allowance 490

Salaries and wages expenses 10,556

Sales commissions 760

Share capital 115,402

T Travel expense (salesperson) 300

Translation of foreign operations (gain) 2,450

Additional information:

1. 25% of the notes payable are due next year.

2. On 30 December, Karya Berjaya Bhd receives cash advances of RM5,500 from Rasa Indah Resort. Karya Berjaya Bhd is required to provide services relating to internet access surrounding the Rasa Indah Resort on February 2020. However, the transaction was not recorded by the accountant.

3. Karya Berjaya Bhd returns defect cables bought from supplier. The cost of the cables is RM1,500. In return, the company receives full cash refund. The accountant has not done any adjustment to the relevant accounts.

4. Income tax expense for 2019 is RM34,900.

5. 70% of the bonds payable will be due on 2020. The remaining balance will be due on June 2020.

6. No dividend has been declared.

REQUIRED:

a. Statement of Profit or Loss and Other Comprehensive Income for Karya Berjaya Bhd for the year ended 31 December 2019 according to MFRS 101 Presentation of Financial Statements.

b. Statement of Financial Position for Karya Berjaya Bhd as at 31 December 2019 according to MFRS 101 Presentation of Financial Statements.

QUESTION 2

Below is an unadjusted trial balance of Jaya Trading Bhd at 31 December 2019.

Accounts Debit (RM) Credit (RM)

Land 766,800

Buildings 1,372,680

Equipment 504,000

Accumulated depreciation - buildings 137,268

Accumulated depreciation - equipment 252,000

Patent 60,276

Inventory 551,950

Accounts receivable 109,658

Prepaid insurance 48,000

Cash 1,314,264

Share capital 878,765

Revaluation reserve 560,640

Translation of foreign operations reserve 263,160

Retained earnings 912,720

Deferred tax liability 21,600

Notes payable 194,400

Accounts payable 36,936

Sales revenue 2,238,180

Rent revenue 57,600

Gain on revaluation of properties 29,640

Gain on sale of land 109,560

Gain on translation of foreign operations 5,880

Cost of goods sold 856,152

Sales returns and allowance 1,176

Salaries and wages expenses 25,334

Office expense 14,086

Maintenance and repair expenses 11,953

Property tax expense 1,680

Income tax expense 60,340

5,698,349 5,698,349

Additional information:

1. Salaries and wages of RM18,000 are accrued and unpaid at 31 December 2019.

2. A tenant of an office space has not yet pay a rental for December 2019 amounting RM3,000 and this transaction has not yet been recorded.

3. The company returned defect merchandise bought from supplier and was refunded RM3,500 in cash. The company use perpetual inventory system and this transaction has not yet been recorded.

4. The company received RM35,000 in cash from a customer on 30 December 2019 and recorded as sales revenue. However, the company only managed to supply the merchandise on 3 January 2020.

5. The balance in the prepaid insurance account represents the cost of a one-year period insurance policy covering the period from 1 July 2019 to 30 June 2020.

6. Annual depreciation for building and equipment are based on straight line depreciation basis over a period of 50 years and 10 years respectively with no scrap value.

7. 30% of the notes payable is due next year. The note payable interest rate is 8% per annum.

REQUIRED: (Round-up your answer to the nearest RM)

(a) Journalise the adjusting entries on 31 December 2019. (You may omit the explanation)

(b) Statement of Profit or Loss and Other Comprehensive Income for Jaya Trading Bhd for the year ended 31 December 2019 according to MFRS 101 Presentation of Financial Statements.

(c) Statement of Financial Position for Jaya Trading Bhd as at 31 December 2019 according to MFRS 101 Presentation of Financial Statements.