Silver Tech Bhd is a local manufacturing company specialising in computer and technical services. The company...
Fantastic news! We've Found the answer you've been seeking!
Question:
Transcribed Image Text:
Silver Tech Bhd is a local manufacturing company specialising in computer and technical services. The company was listed in Bursa Malaysia since 2010 with 45,000,000 units of ordinary shares, 500,000 units of 4% redeemable preference shares and 12,000,000 units of 5% non- cumulative preference shares as at 30 June 2021. The trial balance of the company based on the unadjusted balances is shown below: Silver Tech Bhd Trial Balance as at 30 June 2021 Debit Credit RM'000 RM'000 35,500 Revenue Cost of sales 6,500 Distribution costs Administrative costs 950 1,300 120 Investment inoome Freehold land (revaluation) Building (revaluation) Machineries (cost) Motor vehicles (cost) Intangible asset Investment properties Investment 5,000 60,000 78,900 83,700 250 500 432 Accumulated depreciation as at 1 July 2020: Building Machineries Motor vehicles Ordinary shares 4% redeemable preference shares 5% non-cumulative preference shares Retained profit Revaluation reserves 10,000 3,500 2,540 45,000 500 12,000 T91,142.5 1,280 11,500 2% convertible debentures Defined benefits asset as at 1 July 2020 Тах рaid Interim dividend – 5% non-cumulative preference shares 650 312.3 250 Inventories 983 Bank 44,135 Account receivables Deferred tax 633.2 389.5 321 Accruals Tustivate W 314,495.5 314,495.5 to Settings Account payables Additional information: Below are details on building as at 1 July 2020: Particular Revalued amount (RM) 20.000,000 Accumulated depreciation (RM) 2,000,000 Revaluation reserve (RM) 380,000 Building Selangor Other buildings All buildings have remaining useful ife of 20 years on 1 July 2020. in 40,000,000 8,000,000 900,000 On 1 January 2021, one of the buildings in Selangor was badly affected by landslide due to heavy rain. The net selling price and value in use as at this date were RM17,000,000 and RM18.660,000. At the same time, on 1 January 2021, the board of directors agreed to sell one of the motor vehicles when the fair value les cost to sell the motor vehicle was RM1,000,000. The motor vehicle has a carrying amount on 1 July 2020 of RM1,480,000 (Accumulated depreciation: RM2.220,000). As at year end, the directors are still committed in finding buyers and are confident the motor vehicle will be sold before end of 2021. All property, plant and equipment are depreciated using straight line method. Machineries and motor vehicles have useful life of 8 years and 10 years respectively. 2. Silver Tech Bhd acquired a machinery on 1 March 2021 under a share-based payment scheme. The terms of the agreement allow for the acquisition to be settled on 1 June 2021 by issuing 1,000,000 units ordinary shares. The fair value of the company's ordinary shares on 1 March and 1 June 2021 was RM2.55 and RM2.80 respectivelyv The machinery has useful life of 8 years. For taxation purposes, the machinery is entitled to a 20% initial allowance and a 14% annual allowance. 3. Investment properties consists of shop lots for rental purposes. One of the shop lots with a value of RM100,000 is vacant. The recoverable amount of this shop lot was RM90,000. Investment properties are measured using fair value model. As at financial year end, the fair value of investment properties is RM800,000. 4. Silver Tech Bhd has a funded defined benefits plan to its employees. The following are the balances as at 30 June 2020 and 30 June 2021. 30 June 2020 30 June 2021 Fair value of plan asset (RM) 2.950,000 3.575,000 Defined benefits obligation (RM) 2.300,000 2.080,000 The current services cost for financial year end 30 June 2021 is RM899,000. The company incurred a past service cost of RM1,320,000. The annual discount rate used by the company is 12% whilst the expected rate of return is 15% per annum. During the year, a total of RM1,900,000 was paid to the benefits plan and RM1,500,000 is paid to retired employees. The present value of future economic benefits is RM545,000. 5. The 2% convertible debentures were issued on 30 April 2020 and can be converted in 50 ordinary shares for every RM200 debentures. On 1 June 2021, 20% of the convertible debentures were converted into ordinary shares. No adjustment has been made for the converted debentures and the debenture interest is still payable as at 30 June 2021. 6. The investment is derived from the quoted shares which were acquired on 1 July 2020. The quoted shares were measured using fair value through profit and loss. On 30 June 2021, the fair value of the shares was RM412,000. 7. The tax paid is for current tax expense which the management estimated to be RM312,300. The taxable temporary differences and deductible temporary differences for asset and liabilities in the statement of financial position as at 30 June 2021 are RM7,539,250 and RM8,700,000 respectively. The temporary differences did not account for the purchase of new equipment during the year. 8. At the end of the year, the company declared the following dividend: 5% non-cumulative preference shares 4% redeemable preference shares 9. The income tax rate is 24%. Required: Prepare the following financial statements in a form suitable for publication: a) Statement of profit or loss and other comprehensive income for the year 30 June 2021. (determine the basic earnings per share and diluted earnings per share) b) Statement of changes in equity for the year ended 30 June 2021. c) Statement of financial position as at 30 June 2021. Show all necessary workings (All figure should be round off to nearest RM). Silver Tech Bhd is a local manufacturing company specialising in computer and technical services. The company was listed in Bursa Malaysia since 2010 with 45,000,000 units of ordinary shares, 500,000 units of 4% redeemable preference shares and 12,000,000 units of 5% non- cumulative preference shares as at 30 June 2021. The trial balance of the company based on the unadjusted balances is shown below: Silver Tech Bhd Trial Balance as at 30 June 2021 Debit Credit RM'000 RM'000 35,500 Revenue Cost of sales 6,500 Distribution costs Administrative costs 950 1,300 120 Investment inoome Freehold land (revaluation) Building (revaluation) Machineries (cost) Motor vehicles (cost) Intangible asset Investment properties Investment 5,000 60,000 78,900 83,700 250 500 432 Accumulated depreciation as at 1 July 2020: Building Machineries Motor vehicles Ordinary shares 4% redeemable preference shares 5% non-cumulative preference shares Retained profit Revaluation reserves 10,000 3,500 2,540 45,000 500 12,000 T91,142.5 1,280 11,500 2% convertible debentures Defined benefits asset as at 1 July 2020 Тах рaid Interim dividend – 5% non-cumulative preference shares 650 312.3 250 Inventories 983 Bank 44,135 Account receivables Deferred tax 633.2 389.5 321 Accruals Tustivate W 314,495.5 314,495.5 to Settings Account payables Additional information: Below are details on building as at 1 July 2020: Particular Revalued amount (RM) 20.000,000 Accumulated depreciation (RM) 2,000,000 Revaluation reserve (RM) 380,000 Building Selangor Other buildings All buildings have remaining useful ife of 20 years on 1 July 2020. in 40,000,000 8,000,000 900,000 On 1 January 2021, one of the buildings in Selangor was badly affected by landslide due to heavy rain. The net selling price and value in use as at this date were RM17,000,000 and RM18.660,000. At the same time, on 1 January 2021, the board of directors agreed to sell one of the motor vehicles when the fair value les cost to sell the motor vehicle was RM1,000,000. The motor vehicle has a carrying amount on 1 July 2020 of RM1,480,000 (Accumulated depreciation: RM2.220,000). As at year end, the directors are still committed in finding buyers and are confident the motor vehicle will be sold before end of 2021. All property, plant and equipment are depreciated using straight line method. Machineries and motor vehicles have useful life of 8 years and 10 years respectively. 2. Silver Tech Bhd acquired a machinery on 1 March 2021 under a share-based payment scheme. The terms of the agreement allow for the acquisition to be settled on 1 June 2021 by issuing 1,000,000 units ordinary shares. The fair value of the company's ordinary shares on 1 March and 1 June 2021 was RM2.55 and RM2.80 respectivelyv The machinery has useful life of 8 years. For taxation purposes, the machinery is entitled to a 20% initial allowance and a 14% annual allowance. 3. Investment properties consists of shop lots for rental purposes. One of the shop lots with a value of RM100,000 is vacant. The recoverable amount of this shop lot was RM90,000. Investment properties are measured using fair value model. As at financial year end, the fair value of investment properties is RM800,000. 4. Silver Tech Bhd has a funded defined benefits plan to its employees. The following are the balances as at 30 June 2020 and 30 June 2021. 30 June 2020 30 June 2021 Fair value of plan asset (RM) 2.950,000 3.575,000 Defined benefits obligation (RM) 2.300,000 2.080,000 The current services cost for financial year end 30 June 2021 is RM899,000. The company incurred a past service cost of RM1,320,000. The annual discount rate used by the company is 12% whilst the expected rate of return is 15% per annum. During the year, a total of RM1,900,000 was paid to the benefits plan and RM1,500,000 is paid to retired employees. The present value of future economic benefits is RM545,000. 5. The 2% convertible debentures were issued on 30 April 2020 and can be converted in 50 ordinary shares for every RM200 debentures. On 1 June 2021, 20% of the convertible debentures were converted into ordinary shares. No adjustment has been made for the converted debentures and the debenture interest is still payable as at 30 June 2021. 6. The investment is derived from the quoted shares which were acquired on 1 July 2020. The quoted shares were measured using fair value through profit and loss. On 30 June 2021, the fair value of the shares was RM412,000. 7. The tax paid is for current tax expense which the management estimated to be RM312,300. The taxable temporary differences and deductible temporary differences for asset and liabilities in the statement of financial position as at 30 June 2021 are RM7,539,250 and RM8,700,000 respectively. The temporary differences did not account for the purchase of new equipment during the year. 8. At the end of the year, the company declared the following dividend: 5% non-cumulative preference shares 4% redeemable preference shares 9. The income tax rate is 24%. Required: Prepare the following financial statements in a form suitable for publication: a) Statement of profit or loss and other comprehensive income for the year 30 June 2021. (determine the basic earnings per share and diluted earnings per share) b) Statement of changes in equity for the year ended 30 June 2021. c) Statement of financial position as at 30 June 2021. Show all necessary workings (All figure should be round off to nearest RM).
Expert Answer:
Answer rating: 100% (QA)
ANSWER Step by Step Explanation Silver Tech Bhd Net book Valu... View the full answer
Related Book For
Business Statistics for Contemporary Decision Making
ISBN: 978-0470910184
6th Edition
Authors: Ken Black
Posted Date:
Students also viewed these accounting questions
-
The trial balance for Eureka Ltd as at 30 June 2012 (before calculation of income tax) is as follows: Note: this is the first year of operation of Eureka Ltd. DR CR $000 $000 Sales Revenue 1235 Cost...
-
The draft statement of financial position at 30 June 2021 for Red Ltd contained the following assets and liabilities: 2021 2020 $ $ Assets Cash 1,000 7,500 Accounts receivable 84,000 76,800 Allowance...
-
Min Industries had selected unadjusted balances as shown below at year-end. A search on the Internet showed fair values on December 31, 2014, of: CashCo, $18; Wells, $0.70. Prepare the appropriate...
-
(b) (i) A long single mode optical fiber has an attenuation of 0.40 dBkm when operating at a wavelength of 1.55 m. The fiber core diameter is 6 pm and the laser source bandwidth is 500 MHz. Determine...
-
What is the current status of the Sarbanes-Oxley Act? Have there been any changes? What do executives think of it now? What impact has it had?
-
What are the common reasons for the termination of a business alliance?
-
Potato skins are generated as a by-product in making potato chips and frozen hash browns at Fit Food. The skins are sold to restaurants for use in appetizers. Processing and disposal costs associated...
-
Alice J. and Bruce M. Byrd are married taxpayers who file a joint return. Their Social Security numbers are 123-45-6789 and 111-11-1112, respectively. Alice's birthday is September 21, 1968, and...
-
Porter Limited manufactures a single product which has the following cost structure based on an annual production budget of 10,000 units: Materials - 4kgs @ 3 per kg 12 Variable direct labour - 5...
-
. With the information generated from the following table derivate from the Bureau of Economic Analysis (https://apps.bea.gov/iTable/index_nipa.cfm), please do the regression analysis, with the...
-
Explain the change in cash during 2019. Income Statement: Net income: (129), dividends: (97), depreciation: (92), revenue (797), expenses: (576). Balance Sheet for 2018. Asset: (63), other current...
-
Is skin color related to any environmental factors? Discuss whether different skin colors are more adaptive in different environments.
-
Compare the independence movement in India with the revolutionary movement in China.
-
What are the effects of urbanization on Latin America, Africa, and the Caribbean?
-
Explain what is meant by risk-neutral pricing. What is the reason for pricing options using a risk-neutral pricing approach?
-
How have family and gender patterns in Latin America, Africa, and the Caribbean been influenced by globalization?
-
Q10) Alice and Bob are two employees of YourEsteemed corporation. Alice works at the head office where as Bob works at a branch office. The head office and the branch office are connected by two...
-
Experiment: Tossing four coins Event: Getting three heads Identify the sample space of the probability experiment and determine the number of outcomes in the event. Draw a tree diagram when...
-
Shown below are the top food and drug stores in the United States in a recent year according to Fortune magazine. Company Revenues ($ billions) Kroger ...........66.11 Walgreen ..........47.41...
-
According to Runzheimer International, a typical business traveler spends an average of $281 per day in Chicago. This cost includes hotel, meals, car rental, and incidentals. A survey of 65 randomly...
-
In each of the following cases, calculate a confidence interval to estimate p1 p2. a. n1 = 85, n2 = 90, p1 = .75, p2 = .67, ; level of confidence = 90%. b. n1 = 1100, n2 = 1300, p1 = .19, p2 = .17;...
-
Describe and explain why buyers and sellers participate in markets.
-
The production possibilities curve can be used to illustrate the economic concepts of _________ (resource combinations outside the production possibilities curve are unattainable), _________...
-
Define and explain the law of demand.
Study smarter with the SolutionInn App