Question: please help me with this question. QUESTION 2 PART A Jigjaz Berhad borrowed RM 12 million on 1 January 2017 with the purpose to finance

please help me with this question.

QUESTION 2 PART A Jigjaz Berhad borrowed RM 12 million on 1 January 2017 with the purpose to finance the construction work of a machinery, qualifying asset. It is expected that the construction of machinery will take three years to complete, commencing from 1 January 2017. The total expenditure incurred per year were as follows: Date RM 1 January 2017 6,000,000 1 April 2018 4,000,000 1 July 2019 2,000,000 Interest on the loan was 5% per annum. The company invested the unutilised fund for a return of 3% per annum. Required: Compute the borrowing cost eligible for capitalisation and the cost of the machinery for the years ended 31 December 2017, 31 December 2018 and 31 December 2019

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer

Step: 1 Unlock blur-text-image

Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock

Step: 3 Unlock

Students Have Also Explored These Related Accounting Questions!

please help me with this question. (Total: 18 marks) QUESTION 2 PART A Jigjaz Berhad borrowed RM 12 million on 1 January 2017 with the purpose to finance the construction work of a machinery,...

Please help me with this question QUESTION 1 Given below are the lists of balances of the statements of profit or loss and the statement of financial position of Harimau Bhd for the year ended 31...

Dear tutors, please help to answer this question based on MFRS123. Thank you TION 2: a) MFRS123 Borrowing Costs prescribes the accounting treatment for Borrowing Costs limited to the costs of...

CAN YOU PLEASE HELP ME SOLVE THE QUESTION REFERENCING THE ANNUAL REPORT OF BILLABOG 2015 AND 2016. THANKS FEDERATION BUSINESS SCHOOL BUACC1508 ACCOUNTING AND FINANCE ASSESSMENT TASK 2: GROUP...

PLEASE help me with this question with detailed explanation , write about 600-700 words I know the case is pretty long but please help me with this, i will 100% give u a like. Question: What do you...

hi expert please help me answer this question How would you justify the need for the proposed change to Jinnah? Suggest some techniques to handle the senior yet problematic employees. At 8:00a.m. on...

please help me to do the part a . not part b , thank you so much 125.330 S1 2017 Assignment#2 - Case text and Questions Part A (Individual): Real options analysis Follow-up rights to the 'emerging'...

Hello, can someone please help me answer the question attached. Thank you! This quiz covers the material from Weeks 5 and 6. Make sure you have reviewed all of that content before This exam has two...

Using the following attached reading titled "An Institutional Explanation of the Democratic Peace by Bruce Bueno de Mesquita, James D. Morrow, Randolph M. Siverson and Alastair Smith compose a paper...

Hello Tutors.I need help with 4 finance investment questions. Please be detailed as much as possible base on the steps taken. Besides your answer to the question, please attached the excel sheets...

List in columnar form the transactions and the accounts debited and credited to reflect the flow of costs through a process cost accounting system for the: 1. purchase of materials and supplies, on...

The average net profit expected in future by XYZ firm is Rs.36, 000 per year. Average capital employed in the business by the firm is Rs. 2,00, 000. The normal rate of return from capital invested in...

Problem 2 : Present Value [ 6 Points ] Consider a bond that you could buy. This bond pays out \ ( \ $ 4 , 0 0 0 \ ) four years from now. This bond also pays a coupon payment of \ ( \ $ 2 0 0 \ ) two...

Describe the belief that some of the testing procedures for biometrics should be considered invasive or unethical. Will this belief influence the business of sports or has it already? If so, how?

1. To provide an insight into why a communication situation can be perceived differently depending on which psychological framework we choose to use.

4. What is the meaning of this statement, we should always demarcate a problem in accordance with our objectives, or with what we are trying to understand? a) Give at least three examples that shed...

3. Discuss the following statements: a) The way in which a problem is structured provides many of the premises for the actual solution. b) Our assumptions about the demarcation of a problem will...