The questions. ( Requirement).A) Prepare the statement of profit or loss for the year ended 31 December 2020B)Prepare the retained earnings statement for the year ended 31 December 2020. C)Prepare the statement of financial position as at 31 December 2020Can solve the above questions for me. The following balances have been extracted from the books of Ambrosia Berhad as at 31December 2020.DebitCreditRMRMLand540,000144,000BuildingMachineryAccumulated Depreciation:BuildingMachinery6% Loan from Maybank, 10 Years36,00043,2007,200210,000Bank overdraft32,220Cash29,474Purchases and sales264,000588,000Discount allowed27,000Salaries expenses90,000Insurance expense43,200Office expense5,220Telephone and internet chargesRetained earnings, 1 Jan3,000119,234Dividend36,000Share capital-OrdinarySuppliesCarriage outwards420,00066,00029,760Return inwards1,200Account receivable73,680Inventories, 1 Jan70,320Account payable39,0001,458,8541,458,854Additional information: Additional information:1. Closing inventories as at 31 December 2020 was valued at RM75,000.2. Interest on loan has been accrued for the year ended. The loan was taken on 1 April 2020.3. Depreciation was to be provided:Machinery5% straight line basis.Building10% on reducing balance method.4. Insurance prepaid was RM6,000.5. Included in the carriage outwards is carriage inwards amounting to RM8,452.Page 1 of 5CONFIDENTIAL202109/SEM103/A6. The record showed that the value of supplies on hand as at 31 December 2020 wasRM45,330.7. Import duty of the goods purchased from a supplier in China amounting to RM4,280 hasbeen paid in 2020 however, the bookkeeper has not recorded it yet in the relevant accounts.8. A payment of RM1,670 for telephone and internet charges was wrongly entered as a debitto office expense by the bookkeeper.

Profit and loss account shows the details of revenues and expenses and the resulting profit and loss…

The following balances have been extracted from the books of Ambrosia Berhad as at 31 December 2020. Debit Credit RM RM Land Building Machinery Accumulated Depreciation: 540,000 144,000 36,000 Building Machinery 6% Loan from Maybank, 10 Years 43,200 7,200 210,000 32,220 Bank overdraft Cash 29,474 Purchases and sales 264,000 588,000 Discount allowed 27,000 Salaries expenses 90,000 43,200 Insurance expense Office expense 5,220 3,000 Telephone and internet charges Retained earnings, 1 Jan Dividend 119,234 36,000 Share capital-Ordinary Supplies Carriage outwards 420,000 66,000 29,760 Return inwards 1,200 Account receivable 73,680 Inventories, 1 Jan Account payable 70,320 39,000 1,458,854 1,458,854

The following balances have been extracted from the books of Ambrosia Berhad as at 31 December 2020. Debit Credit RM RM Land Building Machinery Accumulated Depreciation: 540,000 144,000 36,000 Building Machinery 6% Loan from Maybank, 10 Years 43,200 7,200 210,000 32,220 Bank overdraft Cash 29,474 Purchases and sales 264,000 588,000 Discount allowed 27,000 Salaries expenses 90,000 43,200 Insurance expense Office expense 5,220 3,000 Telephone and internet charges Retained earnings, 1 Jan Dividend 119,234 36,000 Share capital-Ordinary Supplies Carriage outwards 420,000 66,000 29,760 Return inwards 1,200 Account receivable 73,680 Inventories, 1 Jan Account payable 70,320 39,000 1,458,854 1,458,854

College Accounting, Chapters 1-27

23rd Edition

ISBN:9781337794756

Author:HEINTZ, James A.

Publisher:HEINTZ, James A.

Chapter18: Accounting For Long-term Assets

Section: Chapter Questions

Problem 2CE

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Dinnell Company owns the following assets: In the year of acquisition and retirement of an asset, Dinnell records depreciation expense for one-half year. During 2020, Asset A was sold for 7,000. Required: Prepare the journal entries to record depreciation on each asset for 2017 through 2020 and the sale of Asset A. Round all answers to the nearest dollar.
Investing Activities and Depreciable Assets Verlando Company had the following account balances and information available for 2019: During 2019, Verlando recorded the following transactions affecting these accounts: a. Land with a carrying value of 35,000 was sold at a loss of 6,000. b. Land and equipment were purchased with cash during the period. c. Equipment with an original cost of 20,000 that had a book value of 4,000 was written off as obsolete. d. A building with an original cost of 60,000 and accumulated depreciation of 25,000 was sold at a 23,000 gain. e. Depreciation expense and amortization expense were recorded. f. Net income for the year was 60,000. g. A patent was acquired during the year in exchange for 1,200 shares of common stock with a par value of 1 per share and a market value of 26 per share. h. Additional marketable securities wefe purchased during the year. i. Verlando Company has no notes payable in the liabilities section of its balance sheet. Required: 1. Next Level Assuming that Verlando uses the indirect method to determine operating cash flows, what is the amount of depreciation expense and amortization expense that would be added back to net income: 2. Prepare the investing activities section of the statement of cash flows for the year ended December 31, 2019. 3. Prepare the disclosure for significant noncash transactions for the statement of cash flows for the year ended December 31, 2019.
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On December 31, 2019, Vail Company owned the following assets: Vail computes depreciation and amortization expense to the nearest whole year. During 2020, Vail engaged in the following transactions: Required: 1. Check the accuracy of the accumulated depreciation balances at December 31, 2019. Round to the nearest whole dollar in all requirements. 2. Prepare journal entries to record the preceding events in 2020, as well as the year-end recording of depreciation expense. 3. Prepare an Accumulated Depreciation account for each category of assets, enter the beginning balance, post the journal entries from Requirement 2, and compute the ending balance.
During 2019, Ryel Companys controller asked you to prepare correcting journal entries for the following three situations: 1. Machine A was purchased for 50,000 on January 1, 2014. Straight-line depreciation has been recorded for 5 years, and the Accumulated Depreciation account has a balance of 25,000. The estimated residual value remains at 5,000, but the service life is now estimated to be 1 year longer than estimated originally. 2. Machine B was purchased for 40,000 on January 1, 2017. It had an estimated residual value of 5,000 and an estimated service life of 10 years. it has been depreciated under the double-declining-balance method for 2 years. Now, at the beginning of the third year, Ryel has decided to change to the straight-line method. 3. Machine C was purchased for 20,000 on January 1, 2018, Double-declining-balance depreciation has been recorded for 1 year. The estimated residual value of the machine is 2,000 and the estimated service life is 5 years. The computation of the depreciation erroneously included the estimated residual value. Required: Prepare any necessary correcting journal entries for each situation. Also prepare the journal entry necessary for each situation to record depreciation expense for 2019.
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Hunter Company purchased a light truck on January 2, 2019 for 18,000. The truck, which will be used for deliveries, has the following characteristics: Estimated life: 5 years Estimated residual value: 3,000 Depreciation method for financial statements: straight-line method Depreciation for income tax purposes: MACRS (3-year life) From 2019 through 2023, each year, Hunter had sales of 100,000, cost of goods sold of 60,000, and operating expenses (excluding depreciation) of 15,000. The truck was disposed of on December 31, 2023, for 2,000. Required: 1. Prepare an income statement for financial reporting through pretax accounting income for each of the 5 years, 2019 through 2023. 2. Prepare, instead, an income statement for income tax purposes through taxable income for each of the 5 years, 2019 through 2023. 3. Compare the total income for all 5 years under Requirements 1 and 2.
At the end of 2020, while auditing Sandlin Companys books, before the books have been closed, you find the following items: a. A building with a 30-year life (no residual value, depreciated using the straight-line method) was purchased on January 1, 2020, by issuing a 90,000 non-interest-bearing, 4-year note. The entry made to record the purchase was a debit to Building and a credit to Notes Payable for 90,000; 12% is a fair rate of interest on the note. b. The inventory at the end of 2020 was found to be overstated by 15,000. At the same time, it was discovered that the inventory at the end of 2019 had been overstated by 35,000. The company uses the perpetual inventory system. c. For the last 3 years, the company has failed to accrue salaries and w-ages. The correct amounts at the end of each year were: 2018, 12,000; 2019, 18,000; and 2020, 10,000. Required: 1. Prepare journal entries to correct the errors. Ignore income taxes. 2. Assume, instead, that the company discovered the errors after it had closed the books. Prepare journal entries to correct the errors. Ignore income taxes.
Below is the information as at the end of accounting year of December 2020:Details RMDebtors 23,000Bank 55,000Fixed asset at cost 698,000Accumulated depreciation 98,000Creditors 48,000Operating expenses for December 60,000Sales for December 400,000Ending inventory 20,000Retained earnings 120,000 The following additional information was also provided to assist your work.i) Depreciation is provided at the rate of 5% on cost of non-current assets per month.ii) Closing inventory is expected to increase by RM2000 in January from December levels. This is expected to increase by the same figure in February from the projected figure in January. It is expected that in March closing inventory is desired to be RM26,000iii) The company makes a profit of 25% on its sales.iv) Operating expenses is expected to increase by 10% from that of December in January and this is projected to increase at the same growth rate until March.v) Sales is projected to grow by 15% per month from December until…