SHOW CALCULATION AND JOURNAL ENTRIES FOR NO.4 & 5

4. 5. A plant which was purchased on 1 July 2012 at a cost of RM1,340,000 had a reduction in production capacity since September 2018. This had caused several breakdowns during the production process. The board of directors of Laguna Bhd therefore decided to provide impairment on the plant as at year end. The fair value of the plant as at 30 June 2019 is RM350,000 and if it disposed, the company has to incur a dismantling cost of RM12,400. No record has been made to account the impairment loss. The company acquired a building costing RM2,500,000 on 1 July 2013 with the estimated useful life of 30 years. The building is rented out to a third party for RM15,000 per month and the tenancy agreement will be expired on 30 June 2019. Since acquisition, the building was reclassified as investment property and the company adopts the fair value model to measures its investment property subsequent to the initial recognition. The fair value of the investment property on 30 June 2018 was RM4,628,000 and the figure has been recorded. Based on the tenancy agreement, the rental needs to be paid on annual basis and will be due on 30 June each year. However, the rental income for the year ended 30 June 2019 has not been received from the tenants and no record has been made to accrue the rental amount As at 30 June 2019, the company decided not to renew the tenancy agreement and planned to use the building as the company's research center. The fair value of the building is RM5,350,000 on that date. No records have been made to account these transactions. Laguna Bhd. is a company incorporated in Malaysia. The company involved in manufacturing, packaging and marketing of frozen food and beverages products for the local and international market. The company is aiming to be the leader in providing affordable food and beverages product with superior quality. Below is the trial balance of Laguna Bhd. for the year ended 30 June 2019: Debit RM'000 Credit RM'000 187,800 99,310 16,000 31,025 28,331 700 1,208 142,600 90,650 53,430 Sales Cost of sales Interim dividend paid Administrative expenses Selling and distribution expenses Interest expenses Tax payable Freehold land at valuation as at 1 July 2018 Building at cost as at 1 July 2018 Plant and machinery at cost as at 1 July 2018 Accumulated depreciation as at 1 July 2018: Building Plant and machinery Investment property at fair value as at 1 July 2018 Intangible assets Fixed deposits Ordinary share capital Retained earnings as at 1 July 2018 Asset revaluation reserve as at 1 July 2018 (related to the freehold land) 5% Debentures Trade receivables and payables Cash and bank Inventories Income tax paid 9,065 15,915 4,628 30,800 21,200 240,000 63,256 16,000 28,000 3,603 14, 184 16,680 13,658 1,651 564,847 564,847 4. 5. A plant which was purchased on 1 July 2012 at a cost of RM1,340,000 had a reduction in production capacity since September 2018. This had caused several breakdowns during the production process. The board of directors of Laguna Bhd therefore decided to provide impairment on the plant as at year end. The fair value of the plant as at 30 June 2019 is RM350,000 and if it disposed, the company has to incur a dismantling cost of RM12,400. No record has been made to account the impairment loss. The company acquired a building costing RM2,500,000 on 1 July 2013 with the estimated useful life of 30 years. The building is rented out to a third party for RM15,000 per month and the tenancy agreement will be expired on 30 June 2019. Since acquisition, the building was reclassified as investment property and the company adopts the fair value model to measures its investment property subsequent to the initial recognition. The fair value of the investment property on 30 June 2018 was RM4,628,000 and the figure has been recorded. Based on the tenancy agreement, the rental needs to be paid on annual basis and will be due on 30 June each year. However, the rental income for the year ended 30 June 2019 has not been received from the tenants and no record has been made to accrue the rental amount As at 30 June 2019, the company decided not to renew the tenancy agreement and planned to use the building as the company's research center. The fair value of the building is RM5,350,000 on that date. No records have been made to account these transactions. Laguna Bhd. is a company incorporated in Malaysia. The company involved in manufacturing, packaging and marketing of frozen food and beverages products for the local and international market. The company is aiming to be the leader in providing affordable food and beverages product with superior quality. Below is the trial balance of Laguna Bhd. for the year ended 30 June 2019: Debit RM'000 Credit RM'000 187,800 99,310 16,000 31,025 28,331 700 1,208 142,600 90,650 53,430 Sales Cost of sales Interim dividend paid Administrative expenses Selling and distribution expenses Interest expenses Tax payable Freehold land at valuation as at 1 July 2018 Building at cost as at 1 July 2018 Plant and machinery at cost as at 1 July 2018 Accumulated depreciation as at 1 July 2018: Building Plant and machinery Investment property at fair value as at 1 July 2018 Intangible assets Fixed deposits Ordinary share capital Retained earnings as at 1 July 2018 Asset revaluation reserve as at 1 July 2018 (related to the freehold land) 5% Debentures Trade receivables and payables Cash and bank Inventories Income tax paid 9,065 15,915 4,628 30,800 21,200 240,000 63,256 16,000 28,000 3,603 14, 184 16,680 13,658 1,651 564,847 564,847