Air Snow Bhd is a company specialising in air conditioning and technical services nationwide. The accounting...

 

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Air Snow Bhd is a company specialising in air conditioning and technical services nationwide. The accounting department of the company is preparing the financial statements for the year ended 30 June 2021 which will be authorised for issue on 30 September 2021. The trial balance of the company based on the unadjusted account balances is shown below: Air Snow Bhd Trial balance as at 30 June 2021 Debit Credit RM RM Revenue 12,144,600 Cost of sales 5,850,000 Distribution costs 1,000,350 Administrative costs 1,867,320 Investment income 46,000 Allowance for impairment of trade receivables 162,630 Accumulated depreciation as at 1 July 2020: Plant and equipment Building 3,276,000 292,500 Trade payables 1,649,700 Ordinary shares 9,360,000 Retained earnings, 1 July 2020 2,019,420 6% Loan from MMB Bank (taken on 1 January 2021) 585,000 Tax paid 819,000 Inventories, 30 June 2021 2,199,600 Building 1,170,000 Freehold land 2,793,960 Plant and equipment 8,190,000 Investment property 1,544,400 Patents 303,400 Trade receivables 1,685,970 Long term investment 737,100 Cash and bank 1,163,850 Interests on loan from MMB Bank 11,700 Audit fees 12,000 Interim dividend 187,200 29,535,850 29,535,850 Additional information: A bill and hold sales item amounting to RM120,000 made on 25 June 2021 was not recorded in the books. The customer has not made any payments for the goods. However, the closing inventory had excluded this item accordingly. 1. 2. Air Snow Bhd signed a contract with a customer to sell air conditioning units as well as a 12-month technical support for RM290,000. Air Snow Bhd delivered 100 of air conditioning units and transferred its legal title to the customer on 1 July 2020. The customer paid the full amount at the date of delivery. The standalone price of the air conditioning unit and the technical support are RM3,000 and RM1,200 respectively. This entry has been omitted from the business books for the year ended 31 December 2020. 3. At the end of June 2021, a fire incident occurred causing damages to several units of air conditioning unit and spare parts in the warehouse of the company. Due to that unexpected incident, the company's inventories costing RM400,000 could only be sold for RM200,000. 4. Information relating to the company's non-current assets during the year is as follows: On 1 July 2020, the company decided to use the whole investment property which is a building as quarters for its employees. As at that date, the fair value of the property was RM1,800,000. i. i. One of the old plant and equipment costing RM150,000 was disposed on 1 July 2020 at a loss of RM14,000. The accumulated depreciation of the disposed plant and equipment is RM90,000. iii. A land was acquired on 1 October 2020 for undetermined future used costing RM715,000. The fair value of the land as at 30 June 2021 was RM845,000. iv. On 30 June 2021, the freehold land was revalued to RM3,000,000. A motor vehicle was acquired on 1 February 2021 for RM390,000 including the delivery and legal cost of RM1,000. V. No adjustment has been made for the above information. For subsequent measurement, Air Snow Bhd adopts fair value model to account for its investment property, revaluation model for its land and building, and cost model for its motor vehicle and plant and equipment. The company depreciates its non-current assets as follows: Building Plant and equipment 40 years on straight line basis 10% on cost Motor vehicle 5% on net book value 5. Depreciation expenses are charged to administrative expenses, except for depreciation on motor vehicles, which are charged to selling and distribution cost. All depreciation is charged on a monthly basis. The depreciation charges for the year ended 30 June 2021 have not been made. 6. Air Snow Bhd sells air-conditioning units that includes a warranty to repair or replace any defect in its air-conditioning unit for 120 days. Based on experience, it is probable that there will be some claims under the warranties. Air Snow Bhd estimates that such returns usually amount to RM12,500 annually. 7. During the year ended 30 June 2021 a lawsuit as per mentioned by the company's lawyer involved a staff member who has sued the company amounting to RM650,000 for failure to provide a safe working environment causing him to lose his right hand. The company's lawyer stated that the company will be held liable. The case is expected to be settled within one year. 8. During the year ended 30 June 2021, an employee of the company who has been dismissed for improper conduct has sued the company for unfair dismissal. The company's lawyer is of the opinion that it is unlikely that the employee will win the case. 9. One of the Air Snow Bhd's customers who owed the company RM20,000 was declared bankrupt on 20 July 2021. None of the amount is expected to be recovered. 10. While preparing the final account for the year ended 30 June 2021, the accounts clerk discovered that an amount of RM13,000 payments for credit purchases for year ended 2020 has been wrongly accounted as interest on loan. 11. The following information also available as at the financial year end: i. The tax expense for the year is estimated to be RM850,000. ii. The net realisable value of the closing inventory was RM2,180,000. ii. The interest on loan for May and June 2021 is still owing. iv. As at the year end, directors' remuneration of RM300,000 and investment income of RM22,000 were still accrued. Required: Prepare the following statements for the company in compliance with the Companies Act 2016 (amended) and the relevant Malaysian Financial Reporting Standards (MFRS): Statement of Profit or Loss and Other Comprehensive Income for the year ended 30 June 2021; а. b. Statement of Financial Position as at 30 June 2021%3; С. Statement of Changes in Equity for the year ended 30 June 2021; d. The Notes to the Financial Statements for property, plant and equipment and non- adjusting events after reporting period (if any). (70 marks) END OF QUESTION PAPER Air Snow Bhd is a company specialising in air conditioning and technical services nationwide. The accounting department of the company is preparing the financial statements for the year ended 30 June 2021 which will be authorised for issue on 30 September 2021. The trial balance of the company based on the unadjusted account balances is shown below: Air Snow Bhd Trial balance as at 30 June 2021 Debit Credit RM RM Revenue 12,144,600 Cost of sales 5,850,000 Distribution costs 1,000,350 Administrative costs 1,867,320 Investment income 46,000 Allowance for impairment of trade receivables 162,630 Accumulated depreciation as at 1 July 2020: Plant and equipment Building 3,276,000 292,500 Trade payables 1,649,700 Ordinary shares 9,360,000 Retained earnings, 1 July 2020 2,019,420 6% Loan from MMB Bank (taken on 1 January 2021) 585,000 Tax paid 819,000 Inventories, 30 June 2021 2,199,600 Building 1,170,000 Freehold land 2,793,960 Plant and equipment 8,190,000 Investment property 1,544,400 Patents 303,400 Trade receivables 1,685,970 Long term investment 737,100 Cash and bank 1,163,850 Interests on loan from MMB Bank 11,700 Audit fees 12,000 Interim dividend 187,200 29,535,850 29,535,850 Additional information: A bill and hold sales item amounting to RM120,000 made on 25 June 2021 was not recorded in the books. The customer has not made any payments for the goods. However, the closing inventory had excluded this item accordingly. 1. 2. Air Snow Bhd signed a contract with a customer to sell air conditioning units as well as a 12-month technical support for RM290,000. Air Snow Bhd delivered 100 of air conditioning units and transferred its legal title to the customer on 1 July 2020. The customer paid the full amount at the date of delivery. The standalone price of the air conditioning unit and the technical support are RM3,000 and RM1,200 respectively. This entry has been omitted from the business books for the year ended 31 December 2020. 3. At the end of June 2021, a fire incident occurred causing damages to several units of air conditioning unit and spare parts in the warehouse of the company. Due to that unexpected incident, the company's inventories costing RM400,000 could only be sold for RM200,000. 4. Information relating to the company's non-current assets during the year is as follows: On 1 July 2020, the company decided to use the whole investment property which is a building as quarters for its employees. As at that date, the fair value of the property was RM1,800,000. i. i. One of the old plant and equipment costing RM150,000 was disposed on 1 July 2020 at a loss of RM14,000. The accumulated depreciation of the disposed plant and equipment is RM90,000. iii. A land was acquired on 1 October 2020 for undetermined future used costing RM715,000. The fair value of the land as at 30 June 2021 was RM845,000. iv. On 30 June 2021, the freehold land was revalued to RM3,000,000. A motor vehicle was acquired on 1 February 2021 for RM390,000 including the delivery and legal cost of RM1,000. V. No adjustment has been made for the above information. For subsequent measurement, Air Snow Bhd adopts fair value model to account for its investment property, revaluation model for its land and building, and cost model for its motor vehicle and plant and equipment. The company depreciates its non-current assets as follows: Building Plant and equipment 40 years on straight line basis 10% on cost Motor vehicle 5% on net book value 5. Depreciation expenses are charged to administrative expenses, except for depreciation on motor vehicles, which are charged to selling and distribution cost. All depreciation is charged on a monthly basis. The depreciation charges for the year ended 30 June 2021 have not been made. 6. Air Snow Bhd sells air-conditioning units that includes a warranty to repair or replace any defect in its air-conditioning unit for 120 days. Based on experience, it is probable that there will be some claims under the warranties. Air Snow Bhd estimates that such returns usually amount to RM12,500 annually. 7. During the year ended 30 June 2021 a lawsuit as per mentioned by the company's lawyer involved a staff member who has sued the company amounting to RM650,000 for failure to provide a safe working environment causing him to lose his right hand. The company's lawyer stated that the company will be held liable. The case is expected to be settled within one year. 8. During the year ended 30 June 2021, an employee of the company who has been dismissed for improper conduct has sued the company for unfair dismissal. The company's lawyer is of the opinion that it is unlikely that the employee will win the case. 9. One of the Air Snow Bhd's customers who owed the company RM20,000 was declared bankrupt on 20 July 2021. None of the amount is expected to be recovered. 10. While preparing the final account for the year ended 30 June 2021, the accounts clerk discovered that an amount of RM13,000 payments for credit purchases for year ended 2020 has been wrongly accounted as interest on loan. 11. The following information also available as at the financial year end: i. The tax expense for the year is estimated to be RM850,000. ii. The net realisable value of the closing inventory was RM2,180,000. ii. The interest on loan for May and June 2021 is still owing. iv. As at the year end, directors' remuneration of RM300,000 and investment income of RM22,000 were still accrued. Required: Prepare the following statements for the company in compliance with the Companies Act 2016 (amended) and the relevant Malaysian Financial Reporting Standards (MFRS): Statement of Profit or Loss and Other Comprehensive Income for the year ended 30 June 2021; а. b. Statement of Financial Position as at 30 June 2021%3; С. Statement of Changes in Equity for the year ended 30 June 2021; d. The Notes to the Financial Statements for property, plant and equipment and non- adjusting events after reporting period (if any). (70 marks) END OF QUESTION PAPER Air Snow Bhd is a company specialising in air conditioning and technical services nationwide. The accounting department of the company is preparing the financial statements for the year ended 30 June 2021 which will be authorised for issue on 30 September 2021. The trial balance of the company based on the unadjusted account balances is shown below: Air Snow Bhd Trial balance as at 30 June 2021 Debit Credit RM RM Revenue 12,144,600 Cost of sales 5,850,000 Distribution costs 1,000,350 Administrative costs 1,867,320 Investment income 46,000 Allowance for impairment of trade receivables 162,630 Accumulated depreciation as at 1 July 2020: Plant and equipment Building 3,276,000 292,500 Trade payables 1,649,700 Ordinary shares 9,360,000 Retained earnings, 1 July 2020 2,019,420 6% Loan from MMB Bank (taken on 1 January 2021) 585,000 Tax paid 819,000 Inventories, 30 June 2021 2,199,600 Building 1,170,000 Freehold land 2,793,960 Plant and equipment 8,190,000 Investment property 1,544,400 Patents 303,400 Trade receivables 1,685,970 Long term investment 737,100 Cash and bank 1,163,850 Interests on loan from MMB Bank 11,700 Audit fees 12,000 Interim dividend 187,200 29,535,850 29,535,850 Additional information: A bill and hold sales item amounting to RM120,000 made on 25 June 2021 was not recorded in the books. The customer has not made any payments for the goods. However, the closing inventory had excluded this item accordingly. 1. 2. Air Snow Bhd signed a contract with a customer to sell air conditioning units as well as a 12-month technical support for RM290,000. Air Snow Bhd delivered 100 of air conditioning units and transferred its legal title to the customer on 1 July 2020. The customer paid the full amount at the date of delivery. The standalone price of the air conditioning unit and the technical support are RM3,000 and RM1,200 respectively. This entry has been omitted from the business books for the year ended 31 December 2020. 3. At the end of June 2021, a fire incident occurred causing damages to several units of air conditioning unit and spare parts in the warehouse of the company. Due to that unexpected incident, the company's inventories costing RM400,000 could only be sold for RM200,000. 4. Information relating to the company's non-current assets during the year is as follows: On 1 July 2020, the company decided to use the whole investment property which is a building as quarters for its employees. As at that date, the fair value of the property was RM1,800,000. i. i. One of the old plant and equipment costing RM150,000 was disposed on 1 July 2020 at a loss of RM14,000. The accumulated depreciation of the disposed plant and equipment is RM90,000. iii. A land was acquired on 1 October 2020 for undetermined future used costing RM715,000. The fair value of the land as at 30 June 2021 was RM845,000. iv. On 30 June 2021, the freehold land was revalued to RM3,000,000. A motor vehicle was acquired on 1 February 2021 for RM390,000 including the delivery and legal cost of RM1,000. V. No adjustment has been made for the above information. For subsequent measurement, Air Snow Bhd adopts fair value model to account for its investment property, revaluation model for its land and building, and cost model for its motor vehicle and plant and equipment. The company depreciates its non-current assets as follows: Building Plant and equipment 40 years on straight line basis 10% on cost Motor vehicle 5% on net book value 5. Depreciation expenses are charged to administrative expenses, except for depreciation on motor vehicles, which are charged to selling and distribution cost. All depreciation is charged on a monthly basis. The depreciation charges for the year ended 30 June 2021 have not been made. 6. Air Snow Bhd sells air-conditioning units that includes a warranty to repair or replace any defect in its air-conditioning unit for 120 days. Based on experience, it is probable that there will be some claims under the warranties. Air Snow Bhd estimates that such returns usually amount to RM12,500 annually. 7. During the year ended 30 June 2021 a lawsuit as per mentioned by the company's lawyer involved a staff member who has sued the company amounting to RM650,000 for failure to provide a safe working environment causing him to lose his right hand. The company's lawyer stated that the company will be held liable. The case is expected to be settled within one year. 8. During the year ended 30 June 2021, an employee of the company who has been dismissed for improper conduct has sued the company for unfair dismissal. The company's lawyer is of the opinion that it is unlikely that the employee will win the case. 9. One of the Air Snow Bhd's customers who owed the company RM20,000 was declared bankrupt on 20 July 2021. None of the amount is expected to be recovered. 10. While preparing the final account for the year ended 30 June 2021, the accounts clerk discovered that an amount of RM13,000 payments for credit purchases for year ended 2020 has been wrongly accounted as interest on loan. 11. The following information also available as at the financial year end: i. The tax expense for the year is estimated to be RM850,000. ii. The net realisable value of the closing inventory was RM2,180,000. ii. The interest on loan for May and June 2021 is still owing. iv. As at the year end, directors' remuneration of RM300,000 and investment income of RM22,000 were still accrued. Required: Prepare the following statements for the company in compliance with the Companies Act 2016 (amended) and the relevant Malaysian Financial Reporting Standards (MFRS): Statement of Profit or Loss and Other Comprehensive Income for the year ended 30 June 2021; а. b. Statement of Financial Position as at 30 June 2021%3; С. Statement of Changes in Equity for the year ended 30 June 2021; d. The Notes to the Financial Statements for property, plant and equipment and non- adjusting events after reporting period (if any). (70 marks) END OF QUESTION PAPER Air Snow Bhd is a company specialising in air conditioning and technical services nationwide. The accounting department of the company is preparing the financial statements for the year ended 30 June 2021 which will be authorised for issue on 30 September 2021. The trial balance of the company based on the unadjusted account balances is shown below: Air Snow Bhd Trial balance as at 30 June 2021 Debit Credit RM RM Revenue 12,144,600 Cost of sales 5,850,000 Distribution costs 1,000,350 Administrative costs 1,867,320 Investment income 46,000 Allowance for impairment of trade receivables 162,630 Accumulated depreciation as at 1 July 2020: Plant and equipment Building 3,276,000 292,500 Trade payables 1,649,700 Ordinary shares 9,360,000 Retained earnings, 1 July 2020 2,019,420 6% Loan from MMB Bank (taken on 1 January 2021) 585,000 Tax paid 819,000 Inventories, 30 June 2021 2,199,600 Building 1,170,000 Freehold land 2,793,960 Plant and equipment 8,190,000 Investment property 1,544,400 Patents 303,400 Trade receivables 1,685,970 Long term investment 737,100 Cash and bank 1,163,850 Interests on loan from MMB Bank 11,700 Audit fees 12,000 Interim dividend 187,200 29,535,850 29,535,850 Additional information: A bill and hold sales item amounting to RM120,000 made on 25 June 2021 was not recorded in the books. The customer has not made any payments for the goods. However, the closing inventory had excluded this item accordingly. 1. 2. Air Snow Bhd signed a contract with a customer to sell air conditioning units as well as a 12-month technical support for RM290,000. Air Snow Bhd delivered 100 of air conditioning units and transferred its legal title to the customer on 1 July 2020. The customer paid the full amount at the date of delivery. The standalone price of the air conditioning unit and the technical support are RM3,000 and RM1,200 respectively. This entry has been omitted from the business books for the year ended 31 December 2020. 3. At the end of June 2021, a fire incident occurred causing damages to several units of air conditioning unit and spare parts in the warehouse of the company. Due to that unexpected incident, the company's inventories costing RM400,000 could only be sold for RM200,000. 4. Information relating to the company's non-current assets during the year is as follows: On 1 July 2020, the company decided to use the whole investment property which is a building as quarters for its employees. As at that date, the fair value of the property was RM1,800,000. i. i. One of the old plant and equipment costing RM150,000 was disposed on 1 July 2020 at a loss of RM14,000. The accumulated depreciation of the disposed plant and equipment is RM90,000. iii. A land was acquired on 1 October 2020 for undetermined future used costing RM715,000. The fair value of the land as at 30 June 2021 was RM845,000. iv. On 30 June 2021, the freehold land was revalued to RM3,000,000. A motor vehicle was acquired on 1 February 2021 for RM390,000 including the delivery and legal cost of RM1,000. V. No adjustment has been made for the above information. For subsequent measurement, Air Snow Bhd adopts fair value model to account for its investment property, revaluation model for its land and building, and cost model for its motor vehicle and plant and equipment. The company depreciates its non-current assets as follows: Building Plant and equipment 40 years on straight line basis 10% on cost Motor vehicle 5% on net book value 5. Depreciation expenses are charged to administrative expenses, except for depreciation on motor vehicles, which are charged to selling and distribution cost. All depreciation is charged on a monthly basis. The depreciation charges for the year ended 30 June 2021 have not been made. 6. Air Snow Bhd sells air-conditioning units that includes a warranty to repair or replace any defect in its air-conditioning unit for 120 days. Based on experience, it is probable that there will be some claims under the warranties. Air Snow Bhd estimates that such returns usually amount to RM12,500 annually. 7. During the year ended 30 June 2021 a lawsuit as per mentioned by the company's lawyer involved a staff member who has sued the company amounting to RM650,000 for failure to provide a safe working environment causing him to lose his right hand. The company's lawyer stated that the company will be held liable. The case is expected to be settled within one year. 8. During the year ended 30 June 2021, an employee of the company who has been dismissed for improper conduct has sued the company for unfair dismissal. The company's lawyer is of the opinion that it is unlikely that the employee will win the case. 9. One of the Air Snow Bhd's customers who owed the company RM20,000 was declared bankrupt on 20 July 2021. None of the amount is expected to be recovered. 10. While preparing the final account for the year ended 30 June 2021, the accounts clerk discovered that an amount of RM13,000 payments for credit purchases for year ended 2020 has been wrongly accounted as interest on loan. 11. The following information also available as at the financial year end: i. The tax expense for the year is estimated to be RM850,000. ii. The net realisable value of the closing inventory was RM2,180,000. ii. The interest on loan for May and June 2021 is still owing. iv. As at the year end, directors' remuneration of RM300,000 and investment income of RM22,000 were still accrued. Required: Prepare the following statements for the company in compliance with the Companies Act 2016 (amended) and the relevant Malaysian Financial Reporting Standards (MFRS): Statement of Profit or Loss and Other Comprehensive Income for the year ended 30 June 2021; а. b. Statement of Financial Position as at 30 June 2021%3; С. Statement of Changes in Equity for the year ended 30 June 2021; d. The Notes to the Financial Statements for property, plant and equipment and non- adjusting events after reporting period (if any). (70 marks) END OF QUESTION PAPER

Answer rating: 100% (QA)

a air snow bhd statement of profit or loss and other comprehensive income for the year ended 30 june 2021 rm rm revenue 121446001200003000100 12564600 ... View the full answer