Apple Berhad is a public company located in Malaysia. Given below is a list of its balances as at 31 December 2020: Debit Credit RM'000 RM'000Turnover 25,000Cost of sales10,100 Inventory3,000 Selling and distribution expenses4,000 Administrative expenses3,500 Directors' salaries400 Auditors' fees350 Dividend received 300interest income 250Depreciation expenses Building400 Plant and equipment650 2 million 8% preference shares 2,1005 million ordinary shares 23,000Retained profits at 1 January 2020 16,680Trade payable 5,000Trade receivables4,000 Bank balance1,500 Interim dividends paid - Preference dividends80 Ordinary dividends50 Tax under-provided in the year 201950 Tax paid for the current year1,750 Investment in the equity of listed companies, classified as held for trading900 Investment in loan stock of listed companies, classified as non-current600 Freehold land19,000 Buildings (at cost)41,000 Plant and equipment (at cost)13,000 Accumulated depreciation as at 31 December 2020: Land 26,000Plant and equipment 6,000 104,330 104,330Additional information:The tax expense for the year is RM3,350,000At year-end, the fair value of the investment in equity shares is RM930,000. There is no change in the value of the loan stock investmentEquity shares issued during the year total 2 million at RM6 per shareDepreciation is charged as follows: cost of sales 50 percent, administrative expenses 30 percent and selling expenses 20 percent(When you depreciate assets such as production machinery, the depeciation expense is included within cost of sales; Administrative costs can also include depreciation of appropriate assets) Required: (i) Prepare the statement of changes in equity.

Introduction: Equity capital: Equity capital refers to the capital raised by the business from the…

Answered: (i) Prepare the statement of changes in…

SWFT Essntl Tax Individ/Bus Entities 2020

23rd Edition

ISBN:9780357391266

Author:Nellen

Publisher:Nellen

Chapter12: Corporations: Organization, Capital Structure, And Operating Rules

Section: Chapter Questions

Problem 4BCRQ

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Apple Berhad is a public company located in Malaysia. Given below is a list of its balances as at 31 December 2020:

	Debit	Credit
	RM'000	RM'000
Turnover		25,000
Cost of sales	10,100
Inventory	3,000
Selling and distribution expenses	4,000
Administrative expenses	3,500
Directors' salaries	400
Auditors' fees	350
Dividend received		300
interest income		250
Depreciation expenses
Building	400
Plant and equipment	650
2 million 8% preference shares		2,100
5 million ordinary shares		23,000
Retained profits at 1 January 2020		16,680
Trade payable		5,000
Trade receivables	4,000
Bank balance	1,500
Interim dividends paid	-
Preference dividends	80
Ordinary dividends	50
Tax under-provided in the year 2019	50
Tax paid for the current year	1,750
Investment in the equity of listed companies, classified as held for trading	900
Investment in loan stock of listed companies, classified as non-current	600
Freehold land	19,000
Buildings (at cost)	41,000
Plant and equipment (at cost)	13,000
Accumulated depreciation as at 31 December 2020: Land		26,000
Plant and equipment		6,000
	104,330	104,330

Additional information:

The tax expense for the year is RM3,350,000
At year-end, the fair value of the investment in equity shares is RM930,000. There is no change in the value of the loan stock investment
Equity shares issued during the year total 2 million at RM6 per share
Depreciation is charged as follows: cost of sales 50 percent, administrative expenses 30 percent and selling expenses 20 percent
(When you depreciate assets such as production machinery, the depeciation expense is included within cost of sales; Administrative costs can also include depreciation of appropriate assets)

Required:
(i) Prepare the statement of changes in equity.

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