Karya Berjaya Bhd is a telecommunication company. Below is a list of account balances of the company at 31 December 2019.

Accounts	RM
A	Account receivables	45,691
Accounts payable	15,390
Accumulated depreciation – buildings	10,500
Accumulated depreciation - equipment	4,915
Allowance for doubtful debts	300
B	Bonds payable	250,750
Buildings	571,950
Bad debt expense	300
C	Cost of goods sold	356,730
Cash	547,610
D	Depreciation expense – building	3,240
Depreciation expense – equipment	2,500
E	Equipment	210,000
G	Gain on sale of land	45,650
Gain on revaluation of properties	12,350
Goodwill	25,115
I	Inventory	229,979
L	Land held for future use	67,000
M	Maintenance and repair expenses	4,980
N	Notes payable	81,000
O	Office expense	4,809
P	Property tax expense	700
Prepaid insurance	110,222
R	Rent revenue	24,000
Retained earnings	380,300
Reserve	352,250
S	Sales revenue	934,675
Sales discounts	2,100
Sales returns and allowance	490
Salaries and wages expenses	10,556
Sales commissions	760
Share capital	115,402
T	Travel expense (salesperson)	300
Translation of foreign operations (gain)	2,450

Additional information:

1. 25% of the notes payable are due next year.
2. On 30December, Karya Berjaya Bhd receives cash advances of RM5,500 from Rasa Indah Resort. Karya Berjaya Bhd is required to provide services relating to internet access surrounding the Rasa Indah Resort on February 2020. However, the transaction was not recorded by the accountant.
3. Karya Berjaya Bhd returns defect cables bought from supplier. The cost of the cables is RM1,500. In return, the company receives full cash refund. The accountant has not done any adjustment to the relevant accounts.
4. Income tax expense for 2019 is RM34,900.
5. 70% of the bonds payable will be due on 2020. The remaining balance will be due on June 2020.
6. No dividend has been declared.

REQUIRED:

1. Prepare a Statement of Profit or Loss and Other Comprehensive Income for Karya Berjaya Bhd for the year ended 31 December 2019 according to MFRS 101 Presentation of Financial Statements.
2. Prepare a Statement of Financial Position for Karya Berjaya Bhd as at 31 December 2019 according to MFRS 101 Presentation of Financial Statements.

Answer rating: 100% (QA)

Sales Less Sales Returns Allowances Less Sales Discount Net Sales Cost of Goods Sold 356730 Gross Pr... View the full answer