Firah Bhd was established in March 2007. The following information relates to theobligations of Firah Bhd for the year 2018. The company uses calendar year for itsaccounting period.Firah Bhd has signed for three long-term notes with ACC Bank. Below are thematurity dates and amounts due of the notes:1.Maturity date30 April 201931 October 2020Amount due (RM)35,000300,000245,00031 January 2021On 10 March, Firah Bhd borrowed RM20,000 by signing a one-year loan with AnBank.2.On 15 November, the Board of Directors declared a dividend of RM0.10 pershare to the ordinary shareholders. During the declaration, it was indicated that1,000,000 units of ordinary share were oustanding. The dividend will be paid on15 February 2019.3.On 1 December, the company signed a new agreement with MFA Bank to extendits loan tenure that was supposedly due on 3 December 2018. The loan was madein 2016 with a current outstanding balance of RM50,000. The loan due date isextended to 2 December 2020.On 10 December, Firah Bhd purchased inventory from Lailai Sdn Bhd with aprice of RM25,000 on credit. The credit term is 2/15, n/30.5.As of 31 December 2018, record by the human resources unit showed that anamount of RM32,000 needs to be remitted to the Employees Provident Fund(EPF) soon. Based on prior practice, the company will only remit the EPFcontributions on the fifth day of the following month.The income tax expense for the year 2018 is RM20,000. The company remitsthe payment to the Inland Revenue Board on 1 February 2019.7.8.The total interest incurred in relations to the notes payable for the year ended2018 is RM13,250. However, this amount is not yet paid on 31 December 2018.On 30 December, the company acquired additional inventory from supplier withthe amount of RM105,000 on credit with term 2/15, n/60.9.10. Firah Bhd also has an unpaid utilities expense of RM45,000 as at 31 December2018.Firah Bhd uses gross method to record its inventory purchases.REQUIRED:Prepare the liabilities section of the Statement of Financial Position for Firah Bhd as at 31December 2018.

Name: Firah Bhd was established in March 2007. The following information re
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Description: Firah Bhd was established in March 2007. The following information relates to theobligations of Firah Bhd for the year 2018. The company uses calendar year for itsaccounting period.Firah Bhd has signed for three long-term notes with ACC Bank. Below

A company's debts and financial obligations to third parties are listed in the Liabilities section…

Answered: REQUIRED: Prepare the liabilities…

Business

Accounting

REQUIRED: Prepare the liabilities section of the Statement of Financial Position for Firah Bhd as at 31 December 2018.

Intermediate Accounting: Reporting And Analysis

3rd Edition

ISBN:9781337788281

Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Chapter14: Financing Liabilities: Bonds And Long-term Notes Payable

Section: Chapter Questions

Problem 30E

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