Question 2: Cawan Bhd is a public company whose main activity is the retailing of kitchen...
Fantastic news! We've Found the answer you've been seeking!
Question:
Transcribed Image Text:
Question 2: Cawan Bhd is a public company whose main activity is the retailing of kitchen cabinet. The following balances were extracted from the books of the company as at 31 December 2020. Land at cost Building at cost Plant and machinery at cost Motor vehicle Accumulated depreciation at 1 January 2020 Building Plant and machinery Motor vehicle Retained profits at 1 January 2020 5% Preference shares Ordinary share capital Revaluation reserve Investments 5% bank loan Trade receivables and payables Provision for doubtful debts at 1 January 2020 Provision for discount allowable at 1 January 2020 Other income Cash at bank Sales Cost of sales Selling and distribution expenses Administrative expenses. Finance cost Inventory at 31 December 2020 Dividends received Tax payable Tax paid Interim dividends paid: Preference dividend Ordinary dividend Bad debt recovered Discount allowed Other Intangibles 8% Debentures Debit RM 2,300,000 1,650,000 1,200,000 1,250,000 1,200,000 270,000 350,000 420,000 220,000 420,000 163,000 210,000 70,000 25,000 410,000 3,000 510,501 10,671,501 Credit RM 110,000 200,000 45,000 1,450,000 1,000,000 3,200,000 20,000 1,500,000 150,000 46,000 11,500 70,000 2,074,000 133,000 160,000 1,501 500,500 10,671,501 Additional information: 1. 2. 3. 4. 5. 6. 7. 8. 9. The amount of return inward amounted RM12,500 was wrongly recorded as carriage inward. The fair value of the land is RM 1,200,000 surpluses as at the end of the year. Bad debt of RM10,500 have not been provided for. The provision for doubtful debts was to be 5% of the remaining trade receivable. Provision for discount allowable was to be at 5% of potential good debtors. The tax expense for the year is RM85,000. Included in the administrative expenses were prepaid for utility bills and insurance expenses amounted to RM4,000 and RM7,000 respectively The auditor's fees and directors are to be provided at RM20,000 and RM100,000 respectively. The 5% bank loan was secured on 1 August 2020 and interest is to be paid annually on 10 January. Depreciation on non-current assets are to be provided as follows: Building Plant and machinery Motor vehicle 30 years of useful life 10% on book value 10% on cost At the end of the year, the company made a right issue of one share for every ten shares held at RM2 per share. All the shares offered under the right issue were taken up. 10. At the year end, the director declared a final dividend for both preferences share and 5% for ordinary share. Required: (a) Prepare a Statement of Comprehensive Income for the year ended 31 December 2020 (show your working). (12 marks) (b) Prepare a Statement of Financial Position as at 31 December 2020 (show your working). (18 marks) [30 marks] Question 2: Cawan Bhd is a public company whose main activity is the retailing of kitchen cabinet. The following balances were extracted from the books of the company as at 31 December 2020. Land at cost Building at cost Plant and machinery at cost Motor vehicle Accumulated depreciation at 1 January 2020 Building Plant and machinery Motor vehicle Retained profits at 1 January 2020 5% Preference shares Ordinary share capital Revaluation reserve Investments 5% bank loan Trade receivables and payables Provision for doubtful debts at 1 January 2020 Provision for discount allowable at 1 January 2020 Other income Cash at bank Sales Cost of sales Selling and distribution expenses Administrative expenses. Finance cost Inventory at 31 December 2020 Dividends received Tax payable Tax paid Interim dividends paid: Preference dividend Ordinary dividend Bad debt recovered Discount allowed Other Intangibles 8% Debentures Debit RM 2,300,000 1,650,000 1,200,000 1,250,000 1,200,000 270,000 350,000 420,000 220,000 420,000 163,000 210,000 70,000 25,000 410,000 3,000 510,501 10,671,501 Credit RM 110,000 200,000 45,000 1,450,000 1,000,000 3,200,000 20,000 1,500,000 150,000 46,000 11,500 70,000 2,074,000 133,000 160,000 1,501 500,500 10,671,501 Additional information: 1. 2. 3. 4. 5. 6. 7. 8. 9. The amount of return inward amounted RM12,500 was wrongly recorded as carriage inward. The fair value of the land is RM 1,200,000 surpluses as at the end of the year. Bad debt of RM10,500 have not been provided for. The provision for doubtful debts was to be 5% of the remaining trade receivable. Provision for discount allowable was to be at 5% of potential good debtors. The tax expense for the year is RM85,000. Included in the administrative expenses were prepaid for utility bills and insurance expenses amounted to RM4,000 and RM7,000 respectively The auditor's fees and directors are to be provided at RM20,000 and RM100,000 respectively. The 5% bank loan was secured on 1 August 2020 and interest is to be paid annually on 10 January. Depreciation on non-current assets are to be provided as follows: Building Plant and machinery Motor vehicle 30 years of useful life 10% on book value 10% on cost At the end of the year, the company made a right issue of one share for every ten shares held at RM2 per share. All the shares offered under the right issue were taken up. 10. At the year end, the director declared a final dividend for both preferences share and 5% for ordinary share. Required: (a) Prepare a Statement of Comprehensive Income for the year ended 31 December 2020 (show your working). (12 marks) (b) Prepare a Statement of Financial Position as at 31 December 2020 (show your working). (18 marks) [30 marks]
Expert Answer:
Answer rating: 100% (QA)
8 Sales 2074000 12500 Cost of goods sald 420000 12500 X 30 61500 Goross profit Selling ... View the full answer
Related Book For
International Financial Reporting A Practical Guide
ISBN: 978-1292200743
6th edition
Authors: Alan Melville
Posted Date:
Students also viewed these accounting questions
-
1. The net realizable value of the inventories as at 15 February 2020 is RM1,500,000. 2. Freehold land consists of Land Jelebu and Land Kemaman with carrying value of RM4,000,000 and RM4,400,000...
-
The following balances were taken from the book of Syringe Berhad on 31 December 2020: Trial Balance as at 31 December 2020 Debit (RM) Credit (RM) Advertising 22,800 Cash 46,446 Cost of sales 536,928...
-
Bauk Consumer Electrical Berbad, manufactures a variety of home electrical equipment in Malaysia. The following is the Trial Balance of the company as at 31 December 2021: Debit Credit RM RM Sales...
-
Quick Fix-it Corporation was organized in January 2011 to operate several car repair businesses in a large metropolitan area. The charter issued by the state authorized the following capital stock:...
-
We have made the point that managers often attempt to maximize the contribution margin per unit of a particular resource that limits output capacity. The following are five familiar types of...
-
A fisherman has caught a very large, \(5.0 \mathrm{~kg}\) fish from a dock that is \(2.0 \mathrm{~m}\) above the water. He is using lightweight fishing line that will break under a tension of \(54...
-
Using the central difference method, find the response of the two-degree-of-freedom system shown in Fig. 11.2 when \(c=2, F_{1}(t)=0, F_{2}(t)=10\). Figure 11.2:- X1(t) -x2(t) F(1) k=2 -F2(t) k = 4...
-
Kopke Company, organized in 2012, has these transactions related to intangible assets in that year: Jan. 2 Purchased a patent (5-year life) $280,000. Apr. 1 Goodwill acquired as a result of purchased...
-
The following units of an item were available for sale during the year: Beginning inventory 42 units at $44 Sale 37 units at $70 First purchase 17 units at $45 Sale 12 units at $70 Second purchase...
-
The trial balance of Rosiak Fashion Center contained the following accounts at November 30, the end of the companys fiscal year. Adjustment data: 1. Supplies on hand totaled 2,100. 2. Depreciation is...
-
On January 1, 2018, Lots-Loot purchased a 25% interest in the common stock of Gobbled Up Company for $500,000. At that time, Gobbled Up had 1,000,000 shares of its $1 par common stock issued and...
-
In 2021, an article on barrons.com described the rapid increase in housing prices during 2020 and 2021 that some economists thought might be unsustainable. The article quoted an economist at the...
-
Just as the Covid19 pandemic was beginning to affect the U.S. economy, an article in the Wall Street Journal observed that actions by the federal government were unlikely to stop a major supply shock...
-
The first civilian nuclear reactor began operation in 1957. Yet the agency in charge of overseeing the nuclear industry had fewer than a dozen active regulations in 1970. 14 One explanation for...
-
A metal pot holding boiling water has a handle made of an uninsulated hollow, stainless steel tube (k = 20 W/m K) with inner and outer diameters of 1.6 cm and 2.0 cm, respectively, and is 25 cm long....
-
Participate in an online focus group. Then conduct research on the advantages and disadvantages of conducting a focus group online versus a face-to-face focus group.
-
are real assets. O Stocks and bonds O Land O Machines O Land, machines, and knowledge Knowledge
-
Listed below are common types of current liabilities, contingencies, and commitments: a. Accounts payable b. Bank loans and commercial paper c. Notes payable d. Dividends payable e. Sales and excise...
-
Petersford plc prepares accounts to 31 December each year. On 1 January 2014, the company acquired a non-current asset at a cost of 256,000 and decided to depreciate this asset on the straight-line...
-
(a) Distinguish between current assets and non-current assets. (b) Distinguish between current liabilities and non-current liabilities. (c) Explain why these distinctions are useful.
-
Assuming that today's date is 1 January 2018, calculate the present value of each of the following: (a) 50,000 to be received on 1 January 2021 (b) 100,000 to be received on 1 January 2023 (c) 10,000...
-
A system was prepared by partially decomposing \(\mathrm{CaCO}_{3}\) into an evacuated space. What is the number of degrees of freedom \((f)\) for the system?
-
Prove that chemical potentials of two phases in equilibrium are equal.
-
Derive the following relation: \[ \left(\frac{\partial C_{V}}{\partial V} ight)_{T}=T\left(\frac{\partial^{2} P}{\partial T^{2}} ight)_{V} \]
Study smarter with the SolutionInn App