Additional information: i. Inventory at 31 August 2020 is valued at RM41, 500. ii. The directors proposed
Question:
Additional information:
i. Inventory at 31 August 2020 is valued at RM41, 500.
ii. The directors proposed a dividend of RM0.10 on the ordinary shares capital. The dividend on preference shares has yet to be paid.
iii. Assessment of RM500 and directors’ remuneration of RM2,000 are to be accrued. Insurance prepaid is RM400.
iv. After examining the receivables, an amount of RM1,000 is to be written off as irrecoverable and an allowance for doubtful debt of 3% is to be provided on the remaining receivables.
v. Depreciation: Equipment 10% on cost; Motor vehicles 15% on reducing balance.
vi. Transfer to General Reserve RM1, 000.
vii. Corporate tax is RM2, 000.
Required:
Prepare for the management:
a. The Statement of Comprehensive Income for the year ended 31 August 2020.
b. The Statement of Financial Position as at 31 August 2020.
Governmental and Nonprofit Accounting
ISBN: 978-0132751261
10th edition
Authors: Robert Freeman, Craig Shoulders, Gregory Allison, Robert Smi