Reference no: EM132468542

Point 1) The company's policy on its property, plant and equipment other than land is to depreciate them on a straight-line basis. The following rates charged to the cost of each group of property, plant and equipment at every financial year end: buildings 5%; motor vehicles 10%. The company charged full year depreciation of all its depreciable property, plant and equipment in the year of disposal and acquisition.

Point (ii) Share capital of the company consists of the followings: Ordinary Shares

• Authorised units: 65,000,000 units Issued and fully paid up as at 30 June 2019: 12,000,000 units at issue price of RM5 each. During the financial year ending 30 June 2019, the company has issued 2,000,000 units of new shares at RM5 each. 4% Preference Shares

• Authorised units: 500,000 units

• Issued and fully paid up as at 30 June 2016: 100,000 units at issue price of RM25 each.

Point (iii) Closing inventory was determine at RM700,000, including a batch that was returned due to default. The cost for the faulty batch was RM12,000 and for it to be saleable at RM17,500, repairs need to be made at a cost of RM4,000.

Point (iv) The fixed deposit is for 24 months in a local bank and as at 30 June 2016, it has three more months before it matures.

Point (v) As at 30 June 2019, the followings were discovered:

a. Other operating expenses include repair and maintenance cost for company's vehicles. At the end of June 2016, RM4,000 worth of maintenance cost paid in cash has not been recorded yet.

b. Utilities expense includes electricity bills. The last electricity bill arrived on the last day of June amounted to RM1,500 has not been paid and not recorded yet.

c. Included in the rent income is a payment made by an office tenant who paid RM36,000 rent in January 2016 for a year worth of rent until 31 December 2019.

d. A customer who owed the company RM30,500 and whose debt has been written off as bad few years ago, came back and paid all the amount due. This transaction has not been recorded yet.

e. On 29 June 2019, the company made a purchase of a new factory building of RM500,000. The purchase was made through financing from CIMB Bank. First instalment will be made in August 2016. This purchase has not been recorded yet.

f. Included in the long-term financing is a newly approved financing by Public Bank Berhad amounted to RM3,000,000 in December 2018. The financing would be settled within ten years, where total settlement will be at RM3,300,000. Monthly instalment starts in January 2019 and payment for June 2019 has not been made yet.

g. During the company's AGM held in May 2019, final dividend of 5 sen for every outstanding ordinary share and dividend for preference share has been approved by the members, thus declared. Shares issued within the year are not qualified for the dividend. At the end of the financial year, no dividend has been paid yet for both ordinary and preference shareholders.

h. The company estimates its doubtful debt at the end of every financial year base on its sales amount. Through experience 0.5% of the total sales will not be able to be collected.

i. The company's tax expense for the financial year ending 30 June 2019 is calculated to be RM1,800,000.

j. Depreciation for the company's Property, Plant and Equipment is calculated at the end of the financial year.

Question 1: Show the journal entries to all necessary adjustments needed to adjust the balances of accounts of XYZ Berhad.