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TRIAL BALANCE (EXTRACT)
SITUATION: EVIDENCE FROM REVALUATION OF THE COMPANY'S INTANGIBLE ASSETS REVEALED THAT RM55,000 OF THE DEFERRED DEVELOPMENT EXPENDITURE WERE IMPAIRED AND NEED TO BE WRITTEN DOWN
QUESTION:-
QUESTION 1: WHAT IS JOURNAL ENTRY FOR THAT SITUATION? AND WHAT AMOUNT TO WRITTEN DOWN?
QUESTION 2: WHAT IS CLASSIFICATION FOR THE DEFERRED DEVELOPMENT EXPENDITURE UNDER STATEMENT FINANCIAL POSITION AND UNDER STATEMENT PROFIT OR LOSS? AND WHAT AMOUNT TO PUT BOTH FINANCIAL STATEMENT?
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The trial balance of Bellemy Fashion Center contained the following accounts at November
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