Question 2

The following information relates to AFB Enterprise financial information. The trial balance of AFB as at June 1, 2020, is as follows:

AFB Enterprise

Trial Balance as at June 1 2020

	Debit (RM)	Credit (RM)
Cash	70,500
Accounts receivable	15,200
Merchandise inventory	34,000
Equipment- sewing machine	6,000
Accumulated depreciation		2,400
Capital, Mr Abang		66,000
Retained earnings		26,800
Accounts payable		30,500
Total	125,700	125,700

In June 2020, the transactions conducted were as follows:

June 2	Purchased merchandise of RM90,000 from Karatu Enterprise in Sarawak, FOB shipping point, the freight cost paid was RM380 and the credit terms for the purchase is 2/15, n/30.
June 5	Sold merchandise to Pachi Sdn Bhd, at RM60,000 with a credit term of 2/10, n/25, FOB shipping point. The cost of the merchandise sold was RM20,000, and the carriage cost incurred was RM220
June 6	Mr Abang discovered that 10% of the merchandise purchased on June 2 were defectives, and 10% did not meet the required quality. Therefore, they were returned to Karatu Enterprise in Sarawak.
June 7	Sold merchandise for cash of RM40,000 and the cost of the merchandise sold was RM15,000.
June 10	Made full payment to Karatu Enterprise for purchases on June 2. 20 Sold merchandise on cash to Machi Bhd the listed price was RM30,000, and the cost of the merchandise was RM10,500. Trade discount allowed was 18%.
June 21	Paid corporate advertising expenses RM15,000
June 30	Pachi Sdn Bhd settled their account in full for June 5 transaction.
June 30	Paid salary expense of RM20,000 for the month
June 30	Paid rent RM12,000 for the month

Additional information:

1. Depreciation value for the month is RM600.

2. The value of inventory on June 30, 2020, was RM59,440.

3. Unpaid utilities at the end of the month were RM1,200.

4. The business applies the perpetual inventory method.

REQUIRED:

a. Prepare the Statement of Profit or Loss and Other Comprehensive Income for the month ended June 30 2020.

b. Prepare the Statement of Financial Position as at June 30 2020.