The following is the final balance of the company's assets, liabilities and equity accounts for the current
Question:
The following is the final balance of the company's assets, liabilities and equity accounts for the current financial year.
RM
Intangible assets 7,879,962
Unpaid 91,750,738
Received 173,135,316
Outstanding tax 3,464,044
Real estate investment 8,164,402
Short-term deposits 342,079,060
Unpaid dividends 26,355,040
Property, plant and equipment 186,955,636
Payment 245,038
Inventory 34,905,292
Deferred tax liability 25,990,946
Retained earnings 316,513,518
Revaluation reserve (initial balance) 3,188,650
The fair value reserves of investment securities (initial balance) 4,782,986
Equity shares 356,347,090
Investment in equity securities 58,178,122
Cash and banks 16,850,184
Additional information:
1. Your company is included in the manufacturing sector. Details about your company.
2. Receivables include trade receivables and receivables from contract customers.
3. Payment consists of non-payment to contract customers and trade payables. The entire amount is expected to be settled within one operating cycle.
4. Equity securities investments are held not for trading purposes. Profit from increased fair value of investment for the current period amounted to RM2,895,948.
5. The company invests in debt securities during the current period.
6. There are two (2) additions and three (3) disposals of property, plant and equipment during the current accounting period. One of the additional assets is self-built assets financed through bank loans of 80%. The loan interest rate is 8% while the expected return rate of the company is 10%.
7. There are also properties, plants and equipment that suffer from impairment.
8. Intangible assets consist of assets of limited and unlimited use. The Company also acquired new intangible assets with limited useful lives.
9. The final inventory balance is based on measurement at cost. At the end of the current accounting period, the net realizable value of the finished goods is 1.5% lower than the cost. The company uses the cost of goods sold to record the devaluation of inventory.
Required:
a) For additional information (2) to (9), you are required to set up your own transaction.
b) Referring to the requirements of MFRS 101 Presentation of Financial Statement, prepare
i. Statement of Profit or Loss and Other comprehensive Income
ii. Statement of financial position
iii. Notes to the account
Using Financial Accounting Information The Alternative to Debits and Credits
ISBN: 978-1133161646
7th Edition
Authors: Gary A. Porter, Curtis L. Norton