Question 2(a) The following transactions took place in Sendu Bhd. for the year 2018. a) In January 2018, Sendu Bhd. acquired land, building and equipment from a bankrupt company, Sedih Bhd. for a total price of RM680,000. At the time of purchase, Sedih's assets had the following book and appraisal values: Book Value Appraisal Value RM RM Land 200.000 150,000 Building 230,000 350,000 Office Equipment 300,000 300,000 To be conservative, the company take the lower of the two values for each asset acquired. The following entry was made: Dr. Land RM150,000 Dr. Building 230,000 Dr. Equipment 300,000 Cr. Cash RM680,000 b) In July 2018, Sendu Bhd. purchased store equipment by making a RM2,000 cash as a deposit and signed a 1-year RM23,000 loan with Bank Muslim. The purchase was recorded as follows: Dr. Equipment RM27.300 Cr Loan Payable RM23,000 Cr. Cash 2.000 Cr. Interest Payable 2.300 c) In September 2018. Sendu Bhd. purchased office equipment for RM20,000, terms 2/10. n30. Because the company intended to take the discount, it made no entry until it paid for the acquisition. The entry was: Dr. Equipment RM20,000 Cr. Cash RM19,600 Cr Purchase Discount 400 d) In October 2018, the company built a warehouse for RM600,000. The building could have been purchased for RM740,000. The accountant made the following entry: Dr. Building RM740,000 Cr Cash RM600,000 Cr. Profits on construction 140,000 Required: i) Make necessary adjustments to correct the above journal entries that have been made by Sendu Bhd. in 2018 (6 marks) ii) Prepare the extract of Sendu Bhd. Statement of Financial Position for the year ended 31 December 2018, showing the costs of property, plant and equipment purchased during 2018. (Ignore depreciation) (4 marks) (Sub-total = 10 marks)