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 Debit RM 2,300,000 1,650,000 1,200,000 1,250,000 Credit RM Building Plant and machinery Motor vehicle 110,000 200,000 45,000 Retained profits at 1 January 2020 5% Preference shares Ordinary share capital Revaluation reserve Investments 1,450,000 1,000,000 3,200,000 20,000 1,200,000 5% bank loan 1,500,000 Trade receivables and payables 270,000 150,000 Provision for doubtful debts at 1 January 2020 46,000 Provision for discount allowable at 1 January 2020 11,500 Other income 70,000 Cash at bank 350,000 Sales 2,074,000 Cost of sales 420,000 Selling and distribution expenses 220,000 Administrative expenses 420,000 Finance cost 163,000 Inventory at 31 December 2020 210,000 Dividends received 133,000 Tax payable 160,000 Tax paid 70,000 Interim dividends paid: Preference dividend Ordinary dividend Bad debt recovered Discount allowed Other Intangibles 8% Debentures 25,000 410,000 3,000 510,501 1,501 10,671,501 500,500 10,671,501 Additional information: 1. The amount of return inward amounted RM12,500 was wrongly recorded as carriage inward. 2. 3. The fair value of the land is RM1,200,000 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. 4. The tax expense for the year is RM85,000. 5. 6. 7. 8. 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 30 years of useful life Plant and machinery Motor vehicle 10% on book value 10% on cost 9. 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]