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QUESTION 1 Maafushi Berhad prepares yearly financial statements. Below is the Adjusted Trial Balance as at 31 December 2019. Credit (RM) 40,000 Maafushi Berhad Adjusted

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QUESTION 1 Maafushi Berhad prepares yearly financial statements. Below is the Adjusted Trial Balance as at 31 December 2019. Credit (RM) 40,000 Maafushi Berhad Adjusted Trial Balance as at 31 December 2019 Account Title Debit (RM) Cash 1,214.800 Accounts Receivable 525,800 Office Supplies 136,000 Prepaid Insurance 96,000 Sport Equipment 400,000 Accumulated Depreciation - Sport Equipment Speed Boat 1,000,000 Accumulated Depreciation - Speed Boat Accounts Payable Notes Payable Short-term Loan Dividends Payable Unearned Sport Revenues Ordinary Share Capital Retained Earnings (1 January) Sport Revenues Salaries Expense 127,000 Advertising Expense 73,400 Internet Wi-Fi Expense 73,600 Dividends 150,000 Bad Debts 30,000 Interest Expense 24,000 Miscellaneous Expense 100,000 Total 3,950,600 70,000 556,000 480,000 179,200 150,000 344.800 1,320,600 320,000 490,000 3,950,600 Analysis has been done towards the account balances prepared by the company's accountant. Listed below are the additional transactions to be adjusted at the end of the year: 1. Internet Wi-Fi expenses are charged RM7,360 per month by cash. The amount stated above does not include charges for October, November & December 2019. 2. Unearned sport revenues that remains unearned at the end of the year is RM44.800. 3. Office supplies revealed that RM80,000 has been used as at 31 December 2019. 4. Prepaid insurance for eight years was purchased on and effectively used from 1 January 2019. 5. Advertising expenses amounted RM22,000 is accrued of which yet to be recorded at the end of the year. 6. Depreciation for the year to be computed as follows: a. Sport Equipment is 10% using straight line method. b. Speed Boat is 7% using reducing balance method. Required: (a) Prepare the Statement of Profit or Loss for the year ended 31 December 2019. (7 marks) (b) Prepare the Statement of Retained Earnings for the year ended 31 December 2019. (3 marks) (c) Prepare the Statement of Financial Position as at 31 December 2019. (15 marks) Show all your workings. [TOTAL 25 MARKS]

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