Reference no: EM133100933

Question - To showcase and market its products, Dawn Bhd acquired a shop building for RM180,000 on 1 September 2021. The shop building was immediately utilised by the marketing department. Dawn Bhd had also incurred an additional RM20,000 for a minor renovation of the shop building. The renovation begins on 1 September 2021. However, the renovation works were interrupted for two weeks due to a covid-19 case involving two of the renovation workers. The renovation works continue on 15 September and was completed on 30 September 2021. The company had earlier applied a RM200,000 loan from OhMyBank Bank to finance the acquisition and the minor renovation of the shop building. OhMyBank approved the five years term loan on 4 July 2021, charging a borrowing cost of 3% per annum. Dawn Bhd made the monthly payment of RM3,844 to OhMyBank commencing 31 July 2021. Similar to all of the company's building, the shop building is depreciated using the straight-line method. The estimated useful life of the shop building and the renovation is 40 years and 5 years respectively.

Required - Prepare the relevant journal entries for the financial year ended 31 December 2021.