Charlie Driver was pleased with the results of 3C Company’s operation in year 2021, especially since he only operated on a part-time basis. The Trial Balance of 3C company at 31 December 2021 is given as follows:

DR
$

CR
$
Gross profit 81,174
Share capital 160,000
Trade receivables 64,780
Trade payables 15,620
10% debentures 40,000
Share premium 32,000
Retained earnings 10,280
Debenture interest 2,000
Furniture at cost 100,000
Office Equipment at cost 64,000
Bank 7,238
Cash in hand 360
Wages and salaries 10,000
Rent, assessment and insurance 12,740
Discounts 2,532 1,320
Directors’ remuneration 5,000
Inventories at 31st Dec 2021 124,244
Accumulated depreciation:
- Furniture 19,800
- Office Equipment 32,700

543,320 543,320

Additional information as at 31 December 2021 is as follows:-
1. The share capital consisted of 80,000 ordinary shares of RM1 each and 80,000 10% preference shares of RM1 each. The dividend on the preference shares has yet to be paid and a dividend of 12% on the ordinary shares was proposed.
2. Insurance of RM2,400 and directors’ remuneration of RM5,000 are to be accrued. Rent prepaid is RM600.
3. Depreciation on cost: Furniture 10%; Office Equipment 20%.
4. Transfer to General Reserve RM2,000.
5. Corporate tax is RM4,000.
Required:
Prepare the statement of comprehensive income for the year ended 31 December 2021 and the statement of financial position as at 31 December 2021.

Answer rating: 100% (QA)

Adjusting journal entries Debit Credit Dividend expense 17600 Preference dividend payabl... View the full answer