Recommend the company on the accounting treatment on derecognition of the motor vehicle. PART B: PREPARATION OF
Fantastic news! We've Found the answer you've been seeking!
Question:
Recommend the company on the accounting treatment on derecognition of the motor vehicle.
Transcribed Image Text:
PART B: PREPARATION OF FINANCIAL STATEMENTS FOR PUBLICATION PURPOSES Bauk Consumer Electrical Berhad manufactures a variety of home electrical equipment in Malaysia. The following is the Trial Balance of the company as at 31 December 2021: Debit Credit RM RM Sales 1,306,800 Cost of sales 562,200 54,800 Selling and distribution expenses Administrative expenses Interim Dividend Interest on loan 100,260 64,800 Interest on debentures Таx paid Inventories as at 31 December 2021 (at cost) 43,750 16,440 70,400 352,700 Bank 424,248 326,250 1,800,000 880,000 386,000 Intangible asset Land Building (at cost) Machinery (at cost) Motor vehicle (at cost) Accumulated Depreciation (31 December 2020): Building Machinery Motor vehicles Receivables and Payables Allowance for Impairment of Trade Receivable Rental income 1,223,700 440,000 87,320 656,198 131,050 15,430 211,750 57,200 1,300,000 4.5% Bank loan 8% Debentures Retained profit as at 31 December 2020 Ordinary share capital 12% Preference shares capital General reserve 411,000 422,300 1,200,000 330,000 60,000 100,000 6,517,298 Assets Revaluation Reserve as at 31 December 2020 6,517,298 You are given the following information: 1. The information related to the property, plant and equipment of the company is as follows: a. The depreciation policy of the company is as follows: Building Machinery Motor vehicles 5% on cost; yearly basis. 5% on reducing balance; yearly basis. 20% on reducing balance, monthly basis. is not depreciated. Land Note: Depreciation on motor vehicles is treated as selling and distribution expenses while depreciation for other property, plant and equipment to be treated as administrative expenses. PART B: PREPARATION OF FINANCIAL STATEMENTS FOR PUBLICATION PURPOSES Bauk Consumer Electrical Berhad manufactures a variety of home electrical equipment in Malaysia. The following is the Trial Balance of the company as at 31 December 2021: Debit Credit RM RM Sales 1,306,800 Cost of sales 562,200 54,800 Selling and distribution expenses Administrative expenses Interim Dividend Interest on loan 100,260 64,800 Interest on debentures Таx paid Inventories as at 31 December 2021 (at cost) 43,750 16,440 70,400 352,700 Bank 424,248 326,250 1,800,000 880,000 386,000 Intangible asset Land Building (at cost) Machinery (at cost) Motor vehicle (at cost) Accumulated Depreciation (31 December 2020): Building Machinery Motor vehicles Receivables and Payables Allowance for Impairment of Trade Receivable Rental income 1,223,700 440,000 87,320 656,198 131,050 15,430 211,750 57,200 1,300,000 4.5% Bank loan 8% Debentures Retained profit as at 31 December 2020 Ordinary share capital 12% Preference shares capital General reserve 411,000 422,300 1,200,000 330,000 60,000 100,000 6,517,298 Assets Revaluation Reserve as at 31 December 2020 6,517,298 You are given the following information: 1. The information related to the property, plant and equipment of the company is as follows: a. The depreciation policy of the company is as follows: Building Machinery Motor vehicles 5% on cost; yearly basis. 5% on reducing balance; yearly basis. 20% on reducing balance, monthly basis. is not depreciated. Land Note: Depreciation on motor vehicles is treated as selling and distribution expenses while depreciation for other property, plant and equipment to be treated as administrative expenses.
Expert Answer:
Answer rating: 100% (QA)
Given The value of motor vehicle on December 31 2021 RM 1223700 and the accumulated depreciation on December 31 2020 RM 656198 calculation of addition... View the full answer
Related Book For
Statistical Reasoning for Everyday Life
ISBN: 978-0321817624
4th edition
Authors: Jeff Bennett, Bill Briggs, Mario F. Triola
Posted Date:
Students also viewed these general management questions
-
The Federal Highway Administration compiles information on motor vehicle use around the globe and publishes its findings in Highway Statistics. Following is a contingency table for the number of...
-
The following data describe U.S. motor vehicle travel and fuel consumption from 2002 through 2006. The data represent billions of gallons consumed and billions of miles traveled, respectively. a....
-
The reality check 'Macquarie Leasing forays into Australian motor vehicle floor-plan finance market' on page 541 comments on Macquarie Leasing's expansion into the provision of floor-plan finance for...
-
0 The initial substitution of x = a yields the form Simplify the function algebraically, or use a table or 0 graph to determine the limit. When necessary, state "DNE". x + 4x-5 x - 1 Step 1: Factor...
-
If you were going into business for yourself, what would be your core competencies? What competencies do you have now, and what competencies are you going to develop? Describe what your role would be...
-
Carnival Cruise Lines provides pleasure cruises to the masses. Carnival has several ships and works on high volume/low price rather than offering luxury cruises. What would you predict about the...
-
What are some potential roles for advisory councils? How can organizations use these groups effectively?
-
American Optical Corporation provides a variety of share-based compensation plans to its employees. Under its executive stock option plan, the company granted options on January 1, 2011, that permit...
-
In your role working as a paralegal or legal assistant for iHiker, draft a memorandum to Miguel Rodriguz, the iHiker general counsel, on how best to protect iHiker s intellectual property....
-
Skulas, Inc., manufactures and sells snowboards. Skulas manufactures a single model, the Pipex. In the summer of 2014, Skulas management accountant gathered the following data to prepare budgets for...
-
Draw the appropriate graph assuming that the economy is operating below full employment. Assuming the aggregate demand shortfall is $1580B and MPC is .76, calculate the amount of desired fiscal...
-
Why, according to Marx, does capitalism need a reserve army of the unemployed?
-
How are DNA and RNA different from one another and what are their respective roles in protein synthesis?
-
The Burj Khalifa in Dubai has 163 floors. Compare the gravitational field in a room on the ground floor and one on the \(163^{\text {rd }}\) floor.
-
Why might a person who does not have a job not be unemployed?
-
What does ancient DNA evidence contribute to the debate over the origin of humans?
-
Essay (Total Point: 4.00) #1 We want to digitize an analog signal with frequency 4000hz to 8000hz. What is the bit rate, assuming 8 bits per sample? (4m) Answer
-
In a paragraph of approximately 150-200 words, analyze a film or TV/Streaming Show poster of your choosing by focusing on the ways in which representations in the poster are gendered. Include an...
-
Use Table 5.1 to find the P-value that corresponds to the standard z-score, and determine whether the alternative hypothesis is supported at the 0.05 significance level. z = 1.7 for Ha: u < 75
-
A simple random sample of 16 different cereals is obtained, and the sugar content (in grams of sugar per gram of cereal) is measured for each cereal selected. Those amounts have a mean of 0.295 gram...
-
n = 780, p = 0.160 Assume that population proportions are to be estimated from the samples described. In each case, find the approximate margin of error and 95% confidence interval.
-
The following two questions directly relate to ethics standards in the AICPA Code of Professional Conduct: a. Is it ever improper for a CPA/CPA firm to accept a commission from a client for...
-
Have you ever agreed to do something when you werent sure that you had the skills to accomplish the job? Why did you agree to do it? Can you draw an analogy between your motivations and the ethical...
-
Lew Walls is a CPA and a sole practitioner. Walls serves a small client base in the city of Tuscaloosa, Alabama. A potential client comes into Wallss office one day and asks to discuss the...
Study smarter with the SolutionInn App