Firah Bhd was established in March $2007.$ The following information relates to the obligations of Firah Bhd for the year $2018.$ The company uses calendar year for its accounting period.

$1.$ Firah Bhd has signed for three long$-$term notes with ACC Bank. Below are the maturity dates and amounts due of the notes:

Maturity date Amount due $($RM$)$ 

$30$ April $201935,000$ 

$31$ October $2020300,000$ 

$31$ January $2021245,000$ 

$2.$ On $10$ March, Firah Bhd borrowed RM$20,000$ by signing a one$-$year loan with An Bank.

$3.$ On $15$ November, the Board of Directors declared a dividend of RM$0\mathrm{.}10$ per share to the ordinary shareholders. During the declaration, it was indicated that $1,000,000$ units of ordinary share were oustanding. The dividend will be paid on $15$ February $2019.$ 

$4.$ On $1$ December, the company signed a new agreement with MFA Bank to extend its loan tenure that was supposedly due on $3$ December $2018.$ The loan was made in $2016$ with a current outstanding balance of RM$50,000.$ The loan due date is extended to $2$ December $2020.$ 

$5.$ On $10$ December, Firah Bhd purchased inventory from Lailai Sdn Bhd with a price of RM$25,000$ on credit. The credit term is $2/15,$ n$/30.$ 

$6.$ As of $31$ December $2018,$ record by the human resources unit showed that an amount of RM$32,000$ needs to be remitted to the Employees Provident Fund $($EPF$)$ soon. Based on prior practice, the company will only remit the EPF contributions on the fifth day of the following month.

$7.$ The income tax expense for the year $2018$ is RM$20,000.$ The company remits the payment to the Inland Revenue Board on $1$ February $2019.$ 

$8.$ The total interest incurred in relations to the notes payable for the year ended $2018$ is RM$13,250.$ However, this amount is not yet paid on $31$ December $2018.$ 

$9.$ On $30$ December, the company acquired additional inventory from supplier with the amount of RM$105,000$ on credit with term $2/15,$ n$/60.$ 

$10.$ Firah Bhd also has an unpaid utilities expense of RM$45,000$ as at $31$ December $2018.$ 

Firah Bhd uses gross method to record its inventory purchases.

REQUIRED:

a$)$ Prepare the liabilities section of the Statement of Financial Position for Firah Bhd as at $31$ December $2018$

Answer rating: 100% (QA)

Liabilities Section of the Statement of Financial Position as at December 31 2018 Notes Paya... View the full answer