QUESTION 1 Red Velvet Berhad, a public company, closes its accounts on 30 June every yw The company reported the following unadjusted trial balance on 30 June 2017 Credit RM Debit RM 1.100.000 1,300,000 364,000 700,000 400,000 300,000 125,000 300,000 167,400 120,500 4,800 30,000 438,600 Freehold land Building at cost Accumulated depreciation-building Plant and machinery at cost Accumulated depreciation Plant and machinery Patent Accumulated amortisation-patent Long-term investment Inventory Trade receivables Allowance for doubtful account Prepaid insurance Cash and cash equivalents Loan from bank Account payables 8% Note payable Sales revenue Income from investment Cost of sales Administrative expenses Distribution expenses Other operating expenses Income tax expense Ordinary share capital, 500,000 shares issued Retained camnings (as at 1 July 2016) Dividend Finance cost 500,000 248.800 325,000 2,717,700 100,600 1,112,800 232,600 117,200 118,500 311,600 1,000,000 792,800 100,700 128.800 6,578,700 6,578,700 The followings are yet to be adjusted as at year end 30 June 2017 The prepaid insurance refers to six months insurance premium that the company paid on the 1 March 2017. Insurance is part of administrative expense b. The note payable of RM325,000 was obtained on on the note payable is accrued at year end April 2017. The interest expense c. The long term investment account yields interest revenue of RM7,300. The interest revenue is accrued at year end d. It was determined that RM1.660 of customer balance is to be written off at year end 2016. A cheque for RM1,150 is received from a customer whose account was written off in the previous accounting year, 2015. The company estimates 5% of outstanding trade receivable balance to be uncollectible in the current year. e. The company's depreciation policy is as follows Building-4% on cost Plant and machinery- 20% on carrying value The entity charges depreciation of building as administrative expenses and depreciation of plant and machinery as cost of sales. f. The freehold land is to be revalued to RM1,300,000. Meanwhile, the estimated cconomic life of the patent is 12 years. 8 The company declared and approved dividend of RM0.05 per share which is to be paid on 15 July 2017 Required: Prepare: 1. Statement of profit or loss and other comprehensive income for the year ended 30 June 2017 (14 marks) 2. Statement of changes in equity for the year ended 30 June 2017 (4 marks) 3. Statement of financial position as at 30 June 2017 (12 marks) (TOTAL: 30 MARKS)