Presented below is the trial balance for Akshara Bunga Bhd (ABB) as at 31 December 2020: Accounts Debit (RM) Credit (RM) Land 156,250 Office building 193,750 Equipment 25,000 Motor vehicle 68,750 Accumulated depreciation: - Office building - Equipment - Motor vehicle 65,000 10,000 26,250 Bank 137,500 Trade receivables 172,500 Supplies 18,750 Prepaid insurance 38,250 Long term investment 201,875 Goodwill 50,000 Inventory 56,500 Ordinary share capital 375,000 Reserves 25,000 Retained earnings 206,250 Rent revenue 71,875 Sales 675,000 Gain on revaluation of properties 11,250 Gain on sale of land 12,500 Gain on translation of foreign operations 6,250 Cost of goods sold 280,000 Salary and wages expenses 142,500 Finance cost 25,000 Distribution expenses 25,625 Advertising expenses 15,625 Other operating expenses 15,000 Income tax expense 17,750 Notes payable 100,000 Dividend payable 18,750 Trade payables 12,500 Unearned revenue 25,000 1,640,625 1,640,625 Additional information: No depreciation has been charged for the year. The company policy is to charge a full year’s depreciation on all assets held at the year-end at the following rates: Office Building - 4% per annum on cost Equipment -5% per annum on cost Motor vehicle – 10% per annum on cost Commission to salesmen is paid on net income for 2020 are announced to be RM62,500. The annual payment will be made on 1 March 2021. A note payable of RM100,000 was issued on 1 December 2020 at 9% per year. Interest is paid quarterly. The transaction has been recorded except for accrued interest. 25% of the notes are due next year. It is estimated that the provision for doubtful debts for the year is RM5,000. At the end of the year 2020, RM6,250 of unearned revenue was earned. The revenue earned has not been recorded. Supplies expenses for the year are RM10,000 and have not been recorded. On 28 December 2020 the company purchased merchandise on account at a price of RM15,000. The transaction has not been recorded as at 31 December 2020. REQUIRED: Prepare a Statement of Profit or Loss and Other Comprehensive Income for ABB for the year ended 31 December 2020 according to MFRS 101 Presentation of Financial Statements.

Presented below is the trial balance for Akshara Bunga Bhd (ABB) as at 31 December 2020: Accounts Debit (RM) Credit (RM) Land 156,250 Office building 193,750 Equipment 25,000 Motor vehicle 68,750 Accumulated depreciation: - Office building - Equipment - Motor vehicle 65,000 10,000 26,250 Bank 137,500 Trade receivables 172,500 Supplies 18,750 Prepaid insurance 38,250 Long term investment 201,875 Goodwill 50,000 Inventory 56,500 Ordinary share capital 375,000 Reserves 25,000 Retained earnings 206,250 Rent revenue 71,875 Sales 675,000 Gain on revaluation of properties 11,250 Gain on sale of land 12,500 Gain on translation of foreign operations 6,250 Cost of goods sold 280,000 Salary and wages expenses 142,500 Finance cost 25,000 Distribution expenses 25,625 Advertising expenses 15,625 Other operating expenses 15,000 Income tax expense 17,750 Notes payable 100,000 Dividend payable 18,750 Trade payables 12,500 Unearned revenue 25,000 1,640,625 1,640,625 Additional information: No depreciation has been charged for the year. The company policy is to charge a full year’s depreciation on all assets held at the year-end at the following rates: Office Building - 4% per annum on cost Equipment -5% per annum on cost Motor vehicle – 10% per annum on cost Commission to salesmen is paid on net income for 2020 are announced to be RM62,500. The annual payment will be made on 1 March 2021. A note payable of RM100,000 was issued on 1 December 2020 at 9% per year. Interest is paid quarterly. The transaction has been recorded except for accrued interest. 25% of the notes are due next year. It is estimated that the provision for doubtful debts for the year is RM5,000. At the end of the year 2020, RM6,250 of unearned revenue was earned. The revenue earned has not been recorded. Supplies expenses for the year are RM10,000 and have not been recorded. On 28 December 2020 the company purchased merchandise on account at a price of RM15,000. The transaction has not been recorded as at 31 December 2020. REQUIRED: Prepare a Statement of Profit or Loss and Other Comprehensive Income for ABB for the year ended 31 December 2020 according to MFRS 101 Presentation of Financial Statements.

Principles of Accounting Volume 1

19th Edition

ISBN:9781947172685

Author:OpenStax

Publisher:OpenStax

Chapter4: The Adjustment Process

Section: Chapter Questions

Problem 13PB: Prepare adjusting journal entries, as needed, considering the account balances excerpted from the...

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Question

Presented below is the trial balance for Akshara Bunga Bhd (ABB) as at 31 December 2020:

Accounts	Debit (RM)	Credit (RM)
Land	156,250
Office building	193,750
Equipment	25,000
Motor vehicle	68,750
Accumulated depreciation: - Office building - Equipment - Motor vehicle		65,000 10,000 26,250
Bank	137,500
Trade receivables	172,500
Supplies	18,750
Prepaid insurance	38,250
Long term investment	201,875
Goodwill	50,000
Inventory	56,500
Ordinary share capital		375,000
Reserves		25,000
Retained earnings		206,250
Rent revenue		71,875
Sales		675,000
Gain on revaluation of properties		11,250
Gain on sale of land		12,500
Gain on translation of foreign operations		6,250
Cost of goods sold	280,000
Salary and wages expenses	142,500
Finance cost	25,000
Distribution expenses	25,625
Advertising expenses	15,625
Other operating expenses	15,000
Income tax expense	17,750
Notes payable		100,000
Dividend payable		18,750
Trade payables		12,500
Unearned revenue		25,000
	1,640,625	1,640,625

Additional information:

No depreciation has been charged for the year. The company policy is to charge a full year’s depreciation on all assets held at the year-end at the following rates:

Office Building - 4% per annum on cost

Equipment -5% per annum on cost

Motor vehicle – 10% per annum on cost

Commission to salesmen is paid on net income for 2020 are announced to be RM62,500. The annual payment will be made on 1 March 2021.
A note payable of RM100,000 was issued on 1 December 2020 at 9% per year. Interest is paid quarterly. The transaction has been recorded except for accrued interest. 25% of the notes are due next year.
It is estimated that the provision for doubtful debts for the year is RM5,000.
At the end of the year 2020, RM6,250 of unearned revenue was earned. The revenue earned has not been recorded.
Supplies expenses for the year are RM10,000 and have not been recorded.
On 28 December 2020 the company purchased merchandise on account at a price of RM15,000. The transaction has not been recorded as at 31 December 2020.

REQUIRED:

Prepare a Statement of Profit or Loss and Other Comprehensive Income for ABB for the year ended 31 December 2020 according to MFRS 101 Presentation of Financial Statements.

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