Reference no: EM132461073
Aditional information as at 31 December 2016 is available:
a. Stock as at 31 December 2016 was valued at RM36,000
b. Depreciation for the year ending 31 December 2016 has yet to be provided as follows:
o Property - 1% using straight line method
o Equipment - 15% using reducing balance method
c. Wages and salaries are accrued by RM250
d. Other operating expenses include certain expenses prepaid by RM600 and accrued by RM400
e. Provision for bad debts is to be adjusted to 0.5% (0.005) of trade receivable as at 31 December 2016.
f. Purchase includes goods valued at RM3,200 which were withdrawn by Mr Hensen for his personal use.
g. A provision is to be made for loan interest
Required
Problem 1 : Prepare the Income Statement for the year ending 31 December 2016 and a Statement of Financial Position as at that date.
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Hessen Trial Balance as at 31 December 2016 Property ( at cost)
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Debit (RM)
8/.500
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Credit (RM)
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|
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Equipment ( at cost)
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|
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Provision for depreciation (as at 1 January 2016)
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|
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|
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15.000
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|
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35.000
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Stock, as at 1 January 2016
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15,000
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|
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Purchases
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359,600
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|
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Sales
|
|
485.000
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|
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Discount allowed and received
|
3.370
|
4.420
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Wages and salaries
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52,360
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Bad debts
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1,720
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|
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Loan in'erest
|
1,560
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Carnage outward
|
8,310
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Other operabng expenses
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38,800
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|
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Trade receivable
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48,200
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|
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I ado payable
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33.800
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|
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Provision for doubtful debts
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|
280
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Cash on hand
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|
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Bank
overdraft
|
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14,500
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28.930
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Drawings
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12.000
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13% Loan
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|
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193,800
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Capital, as at 1 January 2016
|
|
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793,600
|
793,00
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