Scribd Logo
Upload

Welcome to Scribd!

  • 30 views

    Midterm - Far2 - Amended

    Uploaded by

    mell
    This document contains a midterm exam for a Financial Accounting & Reporting 2 course. It consists of two questions. Question 1 provides a trial balance for Paya Bhd and asks the student to prepare three financial statements: a statement of profit or loss and other comprehensive income, a statement of changes in equity, and a statement of financial position. Question 2 provides information about redeemable preference shares issued by Fajr Berhad and asks the student to prepare journal entries to record the issuance and interest expense over four years, as well as the redeemable preference shares account in the statement of financial position for each year. The exam is worth a total of 30 marks for question 1 and 20 marks for question 2.

    Copyright:

    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd

    Midterm - Far2 - Amended

    Uploaded by

    mell
    30 views2 pages
    This document contains a midterm exam for a Financial Accounting & Reporting 2 course. It consists of two questions. Question 1 provides a trial balance for Paya Bhd and asks the student to prepare three financial statements: a statement of profit or loss and other comprehensive income, a statement of changes in equity, and a statement of financial position. Question 2 provides information about redeemable preference shares issued by Fajr Berhad and asks the student to prepare journal entries to record the issuance and interest expense over four years, as well as the redeemable preference shares account in the statement of financial position for each year. The exam is worth a total of 30 marks for question 1 and 20 marks for question 2.

    Original Description:

    tutorial

    Original Title

    Midterm - Far2 -amended

    Copyright

    © © All Rights Reserved

    Available Formats

    DOCX, PDF, TXT or read online from Scribd

    Did you find this document useful?

    Is this content inappropriate?

    This document contains a midterm exam for a Financial Accounting & Reporting 2 course. It consists of two questions. Question 1 provides a trial balance for Paya Bhd and asks the student to prepare three financial statements: a statement of profit or loss and other comprehensive income, a statement of changes in equity, and a statement of financial position. Question 2 provides information about redeemable preference shares issued by Fajr Berhad and asks the student to prepare journal entries to record the issuance and interest expense over four years, as well as the redeemable preference shares account in the statement of financial position for each year. The exam is worth a total of 30 marks for question 1 and 20 marks for question 2.

    Copyright:

    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd
    Download as docx, pdf, or txt
    30 views2 pages

    Midterm - Far2 - Amended

    Uploaded by

    mell
    This document contains a midterm exam for a Financial Accounting & Reporting 2 course. It consists of two questions. Question 1 provides a trial balance for Paya Bhd and asks the student to prepare three financial statements: a statement of profit or loss and other comprehensive income, a statement of changes in equity, and a statement of financial position. Question 2 provides information about redeemable preference shares issued by Fajr Berhad and asks the student to prepare journal entries to record the issuance and interest expense over four years, as well as the redeemable preference shares account in the statement of financial position for each year. The exam is worth a total of 30 marks for question 1 and 20 marks for question 2.

    Copyright:

    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd
    Download as docx, pdf, or txt
    of 2

    FINANCIAL ACCOUNTING & REPORTING 2

    Midterm Exam
    Duration 1.5 Hour

    Name:………………………………………………………. Student ID:…………… Section:….

    Question 1

    Paya Bhd, a company supplying Furniture, currently preparing its financial statements for the
    year ending 31 December 2022. Below is the trial balance as at 31 December 2022:

    Debit Credit
    RM RM
    Freehold land at valuation as at 1 January 2022 33,000,000
    Building at cost as at 1 January 2022 31,000,000
    Plant and equipment at cost as at 1 January 2022 42,000,000
    Accumulated depreciation as at 1 January 2022:
    Building 3,000,000
    Plant 12,693,000
    Investment property 8,967,000
    Capitalized development cost 23,200,000
    94 million Ordinary shares 94,000,000
    Retained earnings as at 1 January 2022 18,700,000
    Asset revaluation reserve 4,000,000
    5% Debentures 10,000,000

    Trade receivables and payables 864,000 1,240,000


    Bank 3,670,000
    Inventories 413,000
    Tax paid 1,775,000
    Cost of sales 15,534,000
    Rental income 900,000
    Sales revenue 48,614,000
    Dividend received 48,000
    Interim dividend 1,575,000
    Administrative expenses 25,418,000
    Distribution expenses 5,331,000
    Finance cost 500,000
    Accruals   52,000
    193,247,000 193,247,000
    Additional information:
    1. The land is revalued every Three (3) years. Current year revaluation showed a decrease
    of RM4,000,000 in the value of the land and has not been recorded.
    2. Included in sales revenue RM2.2 million is dividend received.
    3. The policy of the company is to depreciate the building over 50 years on a yearly basis.
    Plant and equipment are depreciated over 10 years on a yearly basis. Depreciation
    expense is charged as administrative expenses.
    4. The capitalized development cost of RM23.2 million was not included Research and
    Development cost of a new project that the company has incurred RM800,000 per month
    from 1st June 2022 until 31 December 2022.
    5. Tax expense for the year was RM1,500,000.
    6. Company made a rights issue of 1 share for every 10 shares held on 31 December
    2022. All the shares were taken up by the shareholders.
    7. The investment property is measured based on the fair value model. The fair value is
    estimated at RM10,000,000 as at 31 December 2022.

    Required:

    Prepare the following statements:


    (a) Statement of Profit or Loss and other Comprehensive Income for Paya Bhd for the
    year ended 31 December 2022.
    (15 marks)
    (b) Statement of Changes in Equity for Paya Bhd for the year ended 31 December 2022.
    (5 marks)
    (c) Statement of Financial Position of Paya Bhd as at 31 December 2022.
    (10 marks)
    [30 marks]

    Question 2
    Fajr Berhad on 1 January 2021, issued 60 million 5% Redeemable Preference Shares
    (RPS) for RM40 million. These shares are redeemable in FOUR (4) years time at a
    Premium of 13.5%. The effective interest rate is 8%. Fajr Berhad measures the Preference
    Shares at Amortized Cost.
    Required:
    (a) Prepare the journal entries to record the issuance of RPS on 1st January 2021.
    (2 marks)
    (b) Prepare the Amortized Cost of Premium table and journal entries to record the Interest
    Expense for FOUR (4) years from 31 December 2021 to 31 December 2024.
    (14 marks)
    (c) Prepare the Redeemable Preference Shares Account at the Statements of Financial
    Position from the years 31 December 2021 to 31 December 2024.
    (4 marks)
    [20 marks]
    END OF QUESTION PAPER

    You might also like