Tasty Biscuit prepares its financial statements on every 31 December and incurred the following during the...

 

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Tasty Biscuit prepares its financial statements on every 31 December and incurred the following during the year 2019: Jan 21 Mar 13 June 1 Sept 19 Bought an old Van for RM18,000 by cheque. Bought a used Furniture for RM2,000 through bank transfer. Bought another old Van for RM12,000 by cheque. Bought an additional used Furniture for RM3,000 by cheque Additional information: (i) At the beginning 2019, the business decided that a full-year (12-month) depreciation on each of non-current assets regardless of the date of its purchase. All vans and Furniture will be given away for charity purpose to a nearby recycle center owned by the Community Service Center at the end of their respective useful lives. (ii) The non-current assets are to be depreciated as follow: -Van: reducing balance method at 50% per year with useful life of 5 years. - Furniture: straight-line method with useful life of 5 years. Required: (a) Calculate the depreciation at the end of each of FIVE (5) years for the vans and furniture. Note: (1) Present your working only in the table format (ii) Round your answers to nearest RM (b) Prepare the Income Statement (extract) for 2021 and 2022. (c) Prepare the Balance Sheet (extract) for 2021 and 2022. Tasty Biscuit prepares its financial statements on every 31 December and incurred the following during the year 2019: Jan 21 Mar 13 June 1 Sept 19 Bought an old Van for RM18,000 by cheque. Bought a used Furniture for RM2,000 through bank transfer. Bought another old Van for RM12,000 by cheque. Bought an additional used Furniture for RM3,000 by cheque Additional information: (i) At the beginning 2019, the business decided that a full-year (12-month) depreciation on each of non-current assets regardless of the date of its purchase. All vans and Furniture will be given away for charity purpose to a nearby recycle center owned by the Community Service Center at the end of their respective useful lives. (ii) The non-current assets are to be depreciated as follow: -Van: reducing balance method at 50% per year with useful life of 5 years. - Furniture: straight-line method with useful life of 5 years. Required: (a) Calculate the depreciation at the end of each of FIVE (5) years for the vans and furniture. Note: (1) Present your working only in the table format (ii) Round your answers to nearest RM (b) Prepare the Income Statement (extract) for 2021 and 2022. (c) Prepare the Balance Sheet (extract) for 2021 and 2022.

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Answers 1 Depreciation 2 a b 3 a b 1 Particulars Revenues 2019 RM 2020 RM 2021 RM 2022 RM 2023 RM Pa... View the full answer