Southern Chemical Sdn Bhd (SC) is pharmaceutical manufacturer, it has thefollowing assets:a) SC has the following items in its office:RMPrinterOffice desk (10 units)Office chair (10 units)Movable partitionNon-movable partition4,0005,0003,0005,50012,300The printer was recorded as an expense in the statement of profit or loss, theother items were recorded in PPE.b) SC leased a tablet counting machine at a yearly lease of RM 15,000 for threeyears (cost of machine RM 45,000) and it incurred expenditure amounting toRM 4,500 in preparing and leveling land to prepare a site for the installationof the tablet counting machine.c) SC constructed 2 buildings within the area of its manufacturing plant asfollows:(i) A building for the living accommodation of the factory workers(ii) A building which houses the officeRequired:Discuss the tax treatment for each type of the above according to Schedule 3 ofIncome Tax Act 1967 (Capital Allowances and Charges), NO computation of capitalallowance is required.

Depreciation expense: Depreciation expense is the reduction in the particular asset due to its use…

Answered: Southern Chemical Sdn Bhd (SC) is…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

See similar textbooks

Similar questions

The following items were among those that were reported on A Company’s income statement: Legal and audit fees P2,000,000 Rent for office space 6,000,000 Interest on acceptances payable 1,000,000 Loss on abandoned equipment 500,000 Insurance 200,000 The office space is used equally by the sales and accounting departments. What amount should be classified as general and administrative expenses?
The following is the Trial Balance of docutech Ltd, a dealer in ICT Equipment, as at 31st December, 2021. GHS GHS Capital 240,000 Receivables and Payables 159,000 51,000 Inventory 99,000 Motor vehicles: (cost) 72,500 Accumulated depreciation (31 December 2020) 32,500 Office equipment: (cost) 90,000 Accumulated depreciation (31 December 2020) 30,000 Administrative expenses 26,000 Purchases and sales 243,750 490,500 Employee benefits 33,000 Selling expenses 20,000 Plant: (cost) 125,000 Accumulated depreciation (31 December 2020) 37,500 Discounts 7,500 12,500 Accruals 79,000…
On July 8, Divo Company sold office supplies for $13,000. Determine the amount and the character of Divo’s gain or loss on sale under each of the following assumptions: Required: a) Divo is a retail store that sells office supplies to customers. Under the LIFO method of accounting, Divo’s cost basis in the supplies was $11,900. b) Divo is a law firm. Divo sold the supplies because it was overstocked and needed the storage space for a different purpose. Under its method of accounting, Divo expenses the cost of office supplies when purchased. c) Divo is an accounting firm. Divo sold the supplies because it is liquidating its business. Divo’s capitalized cost of the supplies was $14,250. Please dont give image based answers thank you
The following Trial Balance was prepared from the books of Maxwell Productions Ltd on December 31, 2010 and presented to you the Financial Accountant for analysis: Trial BalanceDetails/Accounts Dr $ Cr $Insurance 1,200,000 Direct expenses 4,000,000 Bills payable 150,000Net sales 80,000,000Office furniture and fittings 4,500,000 Accumulated depreciation on furniture & fittings 900,000Return outwards of direct raw materials 330,000Rent 3,000,000 500,000 Bank overdraft 550,000Direct raw materials purchased 20,330,000 Indirect factory wages 4,000,000 Stock of direct raw materials January 1, 2010 6,500,000 Stationery 1,100,000 Provision for unrealized profit 600,000Capital 28,940,000Bad debts 370,000 Provision for bad and doubtful debts 400,000Production workers salaries 12,000,000 Cash in hand 1,500,000 Accounts payable 5,600,000Electricity…
Solomon Company started year 1 with $270,000 in its cash and common stock accounts. During year 1, Solomon paid $202,500 cash for employee compensation and $62,100 cash for materials. Required Determine the total amount of assets and the amount of expense shown on the year 1 financial statements assuming Solomon used the labor and materials to make 1,500 chairs. Further, assume that Solomon sold 1,200 of the chairs it made. State the name(s) of the expense account(s) shown on the income statement. Determine the total amount of assets and the amount of expense shown on the year 1 financial statements assuming Solomon used the labor and materials to provide dental cleaning services to 500 patients. State the name(s) of the expense account(s) shown on the income statement
Vehicle Corporation is organized into four operating segments. The internal reporting system generated the following segment information: Revenue from outsiders Inter segment transfers Operating Expenses Auto $4000000 100000 $3600000 Trucks 3500000 200000 4000000 SUVs 2600000 -0- 2000000 Motorcycle 900000 50000 1020000 The company incurred additional operating expenses (of a general nature) of $1,200,000.Perform the profit or loss test to determine which of these segments is separately reportable
The following is the Trial Balance of Sonia HR Enterprises, a dealer in HR Software, as at 31st December, 2021. GHS GHS Capital 240,000 Receivables and Payables 159,000 51,000 Inventory 99,000 Motor vehicles: (cost) 72,500 Accumulated depreciation (31 December 2020) 32,500 Office equipment: (cost) 90,000 Accumulated depreciation (31 December 2020) 30,000 Administrative expenses 26,000 Purchases and sales 243,750 490,500 Employee benefits 33,000 Selling expenses 20,000 Plant: (cost) 125,000 Accumulated depreciation (31 December 2020) 37,500 Discounts 7,500 12,500 Accruals 79,000 Investment income 27,500 Returns 12,000 17,500 Cash and…
The following accounts correspond to the company Hisellav, S.A, which is dedicated to providing maintenance services. The information is relative to the year 2010 and the company asks you to help prepay its income statement and balance sheet for that year with all formality: Salaries payable 6400 public services 2900 Share capital 42,000 building depreciation 4400 income from services 76,300 materials inventory 7900 ISR 3900 trademark 17,600 loss on sale of asset 6000 promotion 15,000 providers 82,200 ESPS 14,000 interest on mortgage 13,000 sales per diem 8000 Retained earnings as of 12/31/09 19,400 clients 38,800 Accumulated depreciation building 18800 interest income 1400 Building 94,000 cash 18800 currency translation gain 3000 mortgage 26,600 rental income 10,500 rent paid in advance 1 year 42,300
The following Trial Balance was prepared from the books of Maxwell Productions Ltd on December 31, 2010 and presented to you the Financial Accountant for analysis: Trial Balance Details/Accounts Dr $ Cr $ Insurance -F 1,200,000 Direct expenses-P 4,000,000 Bills payable- B 150,000 Net sales-T 80,000,000 Office furniture and fittings-B 4,500,000 Accumulated depreciation on furniture & fittings-B 900,000 Return outwards of direct raw materials-P 330,000 Rent F&T 3,000,000 500,000 Bank overdraft- B 550,000 Direct raw materials purchased-P 20,330,000 Indirect factory wages-F 4,000,000 Stock of direct raw materials January 1, 2010-P 6,500,000 Stationery -T 1,100,000 Provision for unrealized profit- B&T 600,000 Capital -B 28,940,000 Bad debts-T 370,000 Provision for bad and doubtful debts-B 400,000…
Swell Computers is a public company that manufactures desktop and laptop computers. The components of the financial statements are: (1) income before taxes = $500,000, (2) total assets = $2.2 billion, and (3) total revenues = $7 billion. Swell Computers' CPA firm might use the lowest percentage for total assets for determining overall materiality, but they also consider qualitative factors. a. Determine overall materiality and tolerable misstatement. Justify your decisions.
The following accounts relate to Warlito Blanche Graphic Arts: Accounts Payable P 122,500Accounts Receivable 219,000Accumulated Depreciation-Building 60,000Accumulated Depreciation-Equipment 60,000Advertising Expense 105,000Art Revenues 1,437,500Building 450,000Cash 36,200Depreciation Expense-Building 30,000Depreciation Expense-Equipment 30,000Equipment 217,000Interest Expense 37,000Land 120,000Miscellaneous Expense 24,600Mortgage Payable 395,000Notes Payable 213,000Office Supplies 17,200Blanche, Capital, 1/1/2009…
Sapling Ltd is an entity that operates a various nurseries and gardening centres around thecountry.The following is the trial balance of the Sapling Ltd for the year ended 28 February 2022:Account Name Debit CreditInventory 75 000Trade receivables 36 000Revenue 1 600 000Cost of sales 750 000Property, plant and equipment 650 000Telephone expense 12 000Revaluation surplus 10 000Salaries and wages 350 000Trade payables 120 000Retained earnings - 1 March 2021 28 000Share capital 100 000Advertising expenses 25 000Depreciation 85 000Loan 98 000Bank 10 000Dividends paid 15 000Finance income 32 000Total 1 998 000 1 998 000Additional information:• The outstanding loan is payable over the next three years in the following ratio 30: 20: 50.• Inventory with a cost price of R20 000 (Selling price of R25 000) was returned by a debtor.No entry for the return of the inventory has been recorded.• 10 000 shares were issued on 28 February 2022 at R5 each for cash. This transaction has notyet been…

SEE MORE QUESTIONS

Recommended textbooks for you

FINANCIAL ACCOUNTING

Accounting

ISBN:

9781259964947

Author:

Libby

Publisher:

MCG

Accounting

ISBN:

9781337272094

Author:

WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.

Publisher:

Cengage Learning,

Accounting Information Systems

Accounting

ISBN:

9781337619202

Author:

Hall, James A.

Publisher:

Cengage Learning,

FINANCIAL ACCOUNTING

Accounting

ISBN:

9781259964947

Author:

Libby

Publisher:

MCG

Accounting

ISBN:

9781337272094

Author:

WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.

Publisher:

Cengage Learning,

Accounting Information Systems

Accounting

ISBN:

9781337619202

Author:

Hall, James A.

Publisher:

Cengage Learning,

Horngren's Cost Accounting: A Managerial Emphasis…

Accounting

ISBN:

9780134475585

Author:

Srikant M. Datar, Madhav V. Rajan

Publisher:

PEARSON

Intermediate Accounting

Accounting

ISBN:

9781259722660

Author:

J. David Spiceland, Mark W. Nelson, Wayne M Thomas

Publisher:

McGraw-Hill Education

Financial and Managerial Accounting

Accounting

ISBN:

9781259726705

Author:

John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles

Publisher:

McGraw-Hill Education

SEE MORE TEXTBOOKS