Reference no: EM132768513
Question - The following information relates to AFB Enterprise financial information. The trial balance of AFB as at June 1, 2020, is as follows:
AFB Enterprise Trial Balance as at June 1 2020
Debit (RM) Credit (RM)
Cash 70,500
Accounts receivable 15,200
Merchandise inventory 34,000
Equipment- sewing machine 6,000
Accumulated depreciation 2,400
Capital, Mr Abang 66,000
Retained earnings 26,800
Accounts payable 30,500
Total 125,700 125,700
In June 2020, the transactions conducted were as follows:
June 2 Purchased merchandise of RM90,000 from Karatu Enterprise in Sarawak, FOB shipping point, the freight cost paid was RM380 and the credit terms for the purchase is 2/15, n/30.
June 5 Sold merchandise to Pachi Sdn Bhd, at RM60,000 with a credit term of 2/10, n/25, FOB shipping point. The cost of the merchandise sold was RM20,000, and the carriage cost incurred was RM220.
June 6 Mr Abang discovered that 10% of the merchandise purchased on June 2 were defectives, and 10% did not meet the required quality. Therefore, they were returned to Karatu Enterprise in Sarawak.
June 7 Sold merchandise for cash of RM40,000 and the cost of the merchandise sold was RM15,000.
June 10 Made full payment to Karatu Enterprise for purchases on June 2.
June 20 Sold merchandise on cash to Machi Bhd the listed price was RM30,000, and the cost of the merchandise was RM10,500. Trade discount allowed was 18%.
June 21 Paid corporate advertising expenses RM15,000.
June 30 Pachi Sdn Bhd settled their account in full for June 5 transaction.
June 30 Paid salary expense of RM20,000 for the month.
June 30 Paid rent RM12,000 for the month.
Additional information:
1. Depreciation value for the month is RM600.
2. The value of inventory on June 30, 2020, was RM59,440.
3. Unpaid utilities at the end of the month were RM1,200.
4. The business applies the perpetual inventory method.
REQUIRED -
(a) Prepare the Statement of Profit or Loss and Other Comprehensive Income for the month ended June 30 2020.
(b) Prepare the Statement of Financial Position as at June 30 2020.