70.2K

Verified Solution

Link Copied!

Pearl Berhad, a limited company, closes its accounts on March 31 every year. The company reported the following unadjusted trial balance on March 31, 2017: Debit Credit RM RM Revenue 1,049,800 Cost of sales 584,200 Intangible asset Property, plant and equipment (at book value) Long term investment 60,000 822,100 200,000 Inventories 76,700 Trade receivable (at book value) 52,800 Cash and cash equivalent 93,900 6% Loan from bank 100,000 8% Note receivable 30,000 Trade payable Administrative expenses Distribution expenses 75,600 183,900 86,900 Income tax 9,600 Prepaid insurance 5,000 Income from investment 80,200 Ordinary share capital Retained earnings (as on April 1, 2016) Dividend 500,000 442,400 42,900 2,248,000 2,248,000 The followings are yet to be adjusted as at year end: 1. The loan from bank was obtained on October 1, 2016. No interest has been paid to date. 2. The note receivable was received on January 1, 2017. The amount due, together with its interest, are to be received on June 30, 2017. 3. Property, plant and equipment consists of: Accumulated Depreciation Cost RM RM Freehold land Building Office equipment 400,000 105,900 350,000 305,000 127,000 Additional information regarding property, plant and equipment: a. Freehold land is revalued to RM480,000. b. Building is depreciated at 5% per annum on straight line method. c. Office equipment is depreciated at 20% per annum on diminishing balance method. Intangible asset was acquired on April 1, 2016 and provide legal benefit to the company over 15 years. However, it is expected to benefit the company only for 10 years. 4. Required: Prepare statement of profit or loss and other comprehensive income, and statement of changes in equity for the year ended March 31, 2017, and statement of financial position as at that date

Answer & Explanation Solved by verified expert

See Answer