1. Cosmo Sdn Bhd The following is the trial balance of Cosmo Sdn Bhd at 31 December 2021. Dr RM Revenue Purchases Administration expenses Distribution expenses Motor vehicle Motor vehicle - Accumulated depreciation Inventory-1 January 2021 Trade receivables Allowance for receivables - 1 January 2021 Bank Equity share capital Retained earnings - 1 January 2021 Trade payables 9% Loan - repayable 1 January 2025 144,000 112,000 44,800 120,000 26,400 28,800 4,000 480,000 vi) Motor vehicle is to be depreciated at 20% per annum vii) Prepaid administration expenses amount to RM3,000 and accrued administration expenses amount to RM5,000 Cr Required: For Cosmo Sdn Bhd, prepare the followings: (1) Statement of profit or loss for the year ended 31 December 2021. Statement of financial position as at 31 December 2021. (i) RM 360,000 24,000 2,000 8,000 Additional information: i) The closing inventory is RM18,000. i) It has been determined that trade receivable of RM500 is irrecoverable. ii) It was decided that the allowance for receivables should be increased by RM300. iv) The loan was taken out on 1 September 2021 and no interest has been accrued. v) The current year tax charge has been estimated at RM2,000 20,400 25,600 40,000 480,000
1. Cosmo Sdn Bhd The following is the trial balance of Cosmo Sdn Bhd at 31 December 2021. Dr RM Revenue Purchases Administration expenses Distribution expenses Motor vehicle Motor vehicle - Accumulated depreciation Inventory-1 January 2021 Trade receivables Allowance for receivables - 1 January 2021 Bank Equity share capital Retained earnings - 1 January 2021 Trade payables 9% Loan - repayable 1 January 2025 144,000 112,000 44,800 120,000 26,400 28,800 4,000 480,000 vi) Motor vehicle is to be depreciated at 20% per annum vii) Prepaid administration expenses amount to RM3,000 and accrued administration expenses amount to RM5,000 Cr Required: For Cosmo Sdn Bhd, prepare the followings: (1) Statement of profit or loss for the year ended 31 December 2021. Statement of financial position as at 31 December 2021. (i) RM 360,000 24,000 2,000 8,000 Additional information: i) The closing inventory is RM18,000. i) It has been determined that trade receivable of RM500 is irrecoverable. ii) It was decided that the allowance for receivables should be increased by RM300. iv) The loan was taken out on 1 September 2021 and no interest has been accrued. v) The current year tax charge has been estimated at RM2,000 20,400 25,600 40,000 480,000
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
Chapter4: The Balance Sheet And The Statement Of Shareholders' Equity
Section: Chapter Questions
Problem 6E: Balance Sheet Baggett Companys balance sheet accounts and amounts as of December 31, 2019, are shown...
Related questions
Concept explainers
Depreciation Methods
The word "depreciation" is defined as an accounting method wherein the cost of tangible assets is spread over its useful life and it usually denotes how much of the assets value has been used up. The depreciation is usually considered as an operating expense. The main reason behind depreciation includes wear and tear of the assets, obsolescence etc.
Depreciation Accounting
In terms of accounting, with the passage of time the value of a fixed asset (like machinery, plants, furniture etc.) goes down over a specific period of time is known as depreciation. Now, the question comes in your mind, why the value of the fixed asset reduces over time.
Topic Video
Question
Transcribed Image Text:1. Cosmo Sdn Bhd
The following is the trial balance of Cosmo Sdn Bhd at 31 December 2021.
Dr
Revenue
Purchases
Administration expenses
Distribution expenses
Motor vehicle
Motor vehicle - Accumulated depreciation
Inventory - 1 January 2021
Trade receivables
Allowance for receivables - 1 January 2021
Bank
Equity share capital
Retained earnings - 1 January 2021
Trade payables
9% Loan - repayable 1 January 2025
RM
144,000
112,000
44,800
120,000
26,400
28,800
4,000
480,000
vi) Motor vehicle is to be depreciated at 20% per annum
vii) Prepaid administration expenses amount to RM3,000 and accrued
administration expenses amount to RM5,000
Cr
Required:
For Cosmo Sdn Bhd, prepare the followings:
(1) Statement of profit or loss for the year ended 31 December 2021.
(ii) Statement of financial position as at 31 December 2021.
RM
360,000
24,000
2,000
Additional information:
i) The closing inventory is RM18,000.
ii) It has been determined that trade receivable of RM500 is irrecoverable.
iii) It was decided that the allowance for receivables should be increased by RM300.
iv) The loan was taken out on 1 September 2021 and no interest has been accrued.
v) The current year tax charge has been estimated at RM2,000
8,000
20,400
25,600
40,000
480,000
Expert Solution
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
Step by step
Solved in 3 steps
Knowledge Booster
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.Recommended textbooks for you
Intermediate Accounting: Reporting And Analysis
Accounting
ISBN:
9781337788281
Author:
James M. Wahlen, Jefferson P. Jones, Donald Pagach
Publisher:
Cengage Learning
Survey of Accounting (Accounting I)
Accounting
ISBN:
9781305961883
Author:
Carl Warren
Publisher:
Cengage Learning
Intermediate Accounting: Reporting And Analysis
Accounting
ISBN:
9781337788281
Author:
James M. Wahlen, Jefferson P. Jones, Donald Pagach
Publisher:
Cengage Learning
Survey of Accounting (Accounting I)
Accounting
ISBN:
9781305961883
Author:
Carl Warren
Publisher:
Cengage Learning