SARAH Engineering Sdn Bhd (SESB) provides consultancy services to their clients. WESB commenced operation on 1 January 2015. WESB year end is 31 December. The trial balance of WESB as at 31 December 2019 is illustrated as follows:

SARAH Engineering Sdn Bhd

Trial Balance as at 31 December 2019

Descriptions DebitRM CreditRM

Bank 432,000

Land 270,000

Building 100,000

Computers 140,000

Motor Vehicle 150,000

Short Term Investment - Quoted Shares 50,000

Trade Receivables 75,500

Prepaid Insurance Charges 3,600

Bad Debts 500

Selling & distribution expenses 40,000

Salary Expenses 340,000

Administrative Charges 20,000

Directors' Remunerations 15,000

Legal Fees 10,000

Audit Fees 5,000

Rental Charges 70,900

Telephone Charges 15,000

Utilities Charges 7,000

Refreshment Expenses 2,000

Tax Paid 25,000

Interim Dividend Paid

Ordinary Share 10,000

Preference Shares 1,500

Suspense Accounts 115,000

Accumulated Depreciation - Building 10,000 Accumulated Depreciation - Computers 12,000

Accumulated Depreciation - Motor Vehicle 15,000

Provision for Doubtful Debts 600

Sales 900,000

Prepaid Revenue 25,400

Investment Income - Quoted Shares 5,000

Rental Income 20,000

10% Debentures (secured on land) 200,000

Short Term Loan 20,000

Trade Payables 20,000

Revaluation Reserve 20,000

Retained Earnings 1/1/2019 120,000

250,000 ordinary shares of RM1 each 250,000

50,000 6% preference shares 50,000

1,783,00 1,783,000

Other information:

1)Income tax expenses for the year amounting to RM30,000. Amount listed in trial balance is the amount paid for the year.

2)At the end of the year, SESB rendered services to a customer that had earlier paid in advance for the services. The adjusting entries were not recorded earlier.

3)Payment of RM3,600 for Insurance Charges is for 12 months period beginning June 2019.

4).The company management decided to write of further RM500 as bad debts for the year. In addition, the management decided to provide 2% of Trade Receivables as Provision for Doubtful Debts.

5).Interest expenses on short term loan and Salaries accrued for the year were RM3,000 and RM15,000 respectively. Prepaid selling & distributions charges for the year were RM7,000.

6).Depreciation charges of 10% per annum are to be provided for all the company's depreciable non-current assets.

7).On 1 June 2019, SESB's top management decided to increase the value of land to RM300,000. As at 31 December 2019, the fair value of the Quoted Shares increased to RM55,000. On 31 December 2019, SESB bought RM10,000 worth of quoted shares from Bursa Malaysia. This purchased has not been recorded in the final accounts.

8).On 1 January 2019, SESB's top management decided to sell 10 laptops at a selling price of RM15,000. The purchased price for the laptops were RM20,000. The cash obtained were correctly recorded in the bank accounts. The other adjustments were temporary credited to suspense accounts.

9).On 1 January 2019, SESB issued 50,000 new ordinary shares of RM1 each. The share was issued at a share price of RM2 each. The shareholders fully paid the ordinary shares during the year. The cash obtained were correctly recorded in the bank accounts. The increase in shareholders capital were temporary credited to suspense accounts.

10).A former staff is suing SESB for wrongful dismissal. The total damages sought is RM200,000. SESB's legal advisor advised that winning the case is highly probable.

11)The BOD declared ordinary shares final dividend of RM10,000 for the year during the company's AGM on 31 Dec 2019. The final dividend for preference shares were also being declared.

As the Company accountant you are required to:

1).Prepare SESB's Statement of Profit or Loss and Comprehensive Income (post adjustments) for the year ended 31 December 2019.

2)Prepare SESB's Statement of Financial Positions (post adjustments) as at 31 December 2019.

3)Prepare SESB's Statement of Changes in Owners' Equity (post adjustments) as at 31 December 2019.