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QUESTION 1 -COMPANY
The trial balance of Mr. Yasser Fashion Center contained the following accounts at the ended of
November 2015.
Trial Balance
November 30, 2015
Cash
Account receivable
Inventory
Supplies
Equipment
Accumulated depreciation - Equipment
Note payable
Account payable
Common stock
Retained earnings
Dividends
Sales revenue
Return inwards
Cost of goods sold
Salaries and wages expense
Advertising expense
Utilities expense
Maintenance and repairs expense
Carriage outwards
Rent expense
Debit (RM)
8,700
27,700
44,700
6,200
133,000
Credit (RM)
23,000
51,000
48,500
50,000
38,000
8,000
755,200
12,800
497,400
136,000
24,400
14,000
12,100
16,700
24,000
965,700
965,700
Additional information:
1. Supplies on hand totalled RM2,100.
2. Depreciation is RM11,500 on the equipment.
3. Interest of RM4,000 is accrued on notes payable at November 30.
4. Inventory actually on hand is RM44,520.
5. Note Payable of RM6,000 are due in January 2016.
Required:
a) Prepare the income statement for the year ended 30 November 2015.
b) Prepare the retained earnings statement for the year ended 30 November 2015.
c) Prepare the balance sheet as at 30 November 2015.
(Total: 25 marks)
RM
190,000
21,000
150,000
28,000
40,000
19,000
12,000
50,000
2,000
10,000
4,070
60,000
31,000
365,000
135,000
8,900
4,250
33,500
18,630
19,150
31,600
86,700
14,000
22,400
13,700
Additional information:
1. Inventory as at 30 September 2015 was valued at RM36,550.
2. An invoice for a credit purchase of goods RM6,500 had been misplaced and no entries had
been recorded in the books.
3. The purchase of fixtures and fittings, RM4,000 had been included in the general running
expenses.
4. At 30 September 2015, computer repair expenses RM1,700 were accrued and salaries and
wages were prepaid RM5,200.
5. The 8% bank loan was received on 1 January 2015.
(14 marks)
(11 marks)
(Total: 25 marks)
QUESTION 4
Presented below are the financial statements of Kelvin Berhad.
Kelvin Berhad
Comparative Balance sheets
December 31
Assets
Equipment
Accumulated depreciation - equipment
Long-term investment
Prepaid expenses
Inventory
Account receivable
Cash
Bank
Total Assets
2015
RM
265,000
(47,000)
140,000
29,300
112,500
92,800
50,000
50,350
692,950
2014
RM
242,500
(52,000)
114,000
26,000
102,850
33,000
40,000
8,400
514,750
112,000
16,500
110,000
220,000
234,450
692,950
67,300
17,000
150,000
175,000
105,450
514,750
Kelvin Berhad
Income statement
For the year ended December 31, 2015
Sales revenue
Gain on disposal of plant assets
Less:
Cost of goods sold
Operating expenses, excluding depreciation
Depreciation expense
Income tax expense
Interest expense
Net income
RM
392,780
5,000
135,460
12,410
45,000
27,280
4,730
RM
397,780
224,880
172,900
Additional information:
1. New equipment costing RM80,000 was purchased for cash during the year.
2. Old equipment having an original cost RM57,500 and accumulated depreciation of
RM50,000 was sold for RM12,500 cash.
3. Bond payable matured and were paid off at face value for cash.
4. A cash dividend of RM43,900 was declared and paid during the year.
Required:
a) Prepare the statement of cash flows for 2015 using indirect method.
b) Compute these cash-based measures:
(i)
Current cash debt coverage.
(ii)
Cash debt coverage.
(19 marks)
(3 marks)
(3 marks)
(Total: 25 marks)
1 Opening balance brought down in cash account RM200 and bank account
RM6,672.
2 Anita received from Purple a cheque for RM250.
4 Paid RM49 for wages in cash.
7 Sold goods for cash RM152.
8 Received a cheque of RM415 from Q Smart, as full settlement of a debt of
RM444.
10 Paid RM83 for sundry expenses by cash.
14 Purchased goods RM506 by cheque.
18 A cheque was paid to J.Sandra for RM285 as full settlement of a debt of RM301.
20 Withdrew cash RM100 for personal use.
23 Purchased goods on credit from Ali Baba RM300.
25 Sold goods for cash RM500.
27 Paid RM130 by cheque for stationary.
31 Keep RM250 cash in hand and remaining balance deposited into the bank.
Required:
Record the above transactions into three-column cash book.
(20 marks)
4b)
Koko Company uses the perpetual inventory system and had the following purchases and
sales during March.
Purchases
Date
1-Mar
3-Mar
4-Mar
10-Mar
16-Mar
19-Mar
25-Mar
Explanation
Beginning
inventory
Purchase
sales
Purchase
sales
Purchase
sales
Sales
Units
Unit Costs
100
60
RM40
RM50
200
40
Units
Sellin
g
70
RM80
80
RM90
150
RM90
RM55
RM60
Required:
Using the inventory and sales data above, calculate the value assigned to cost of goods sold in
March and to the ending inventory at March 31 using LIFO.
(15
marks)
The following selected events and transactions occurred during July for Taiping Safari Park.
July:
1
4
8
11
15
16
19
22
26
29
Required:
Journalize the above transactions in General Journal form. Explanations are not required.
Net Sales
Cost of Goods Sold
Other revenue
Operating expenses
Opening inventory
Closing inventory
Trade receivable
Cash
Trade payable
Long-term loan
RM
600,000
320,000
40,000
95,000
15,000
29,000
52,000
22,000
33,000
100,000
Required:
Compute and comment on the following ratios:
i)
Gross profit
ii)
Profit margin
iii)
iv)
Inventory turnover
Account receivable turnover