Question

Question 4 Below was extract from the books of Piko Sdn Bhd for the year ended 31 December 2019. RM 158,000 Retained profit 31 December 2018 Inventory 1 January 2019 Purchases 39,000 550,000 1,292,000 Sales Share capital 120,000 116,000 241,000 23,500 400,000 Distribution expenses Administration expenses Bad debts 6% bonds (redeemable in Year 2021) Trade receivables Trade payables Allowance for doubtful debts Interest paid on bonds Bank 200,000 73,500 6,000 12,000 58,000 105,000 Dividends paid Plant and machinery at cost 920,000 Accumulated depreciation as at 1 January 2019 215,000

Dear Expert, If possible, please do in Excel format. Thanks a lot

Answer 1

a. Income Statement -

Piko Sdn Bhd Income Statement For the Year Ended December 31, 2019 Sales $1,292,000 Cost of Goods Sold: Inventory 1 January 2019 $ 39,000 (+) Purchases $550,000 Inventory 31 December 2019 $ (35,000) $ 554,000 Gross Profit $ 738,000 Operating Expense: Selling Expenses: Distribution Expense Bad Debts General & Administration Expense: Administration Expense Depreciation - Plant & Machinery $ 123,500 $ 27,500 $ 237,000 $ 92,000 Total Operating Expenses $ 480,000 $ 258,000 Income from Operation Other Expenses/(Gain): Interest Paid on Bonds Profit before Tax (-) Income Tax Expenses $ 12,000 $ 246,000 $ 49,200 Net Income $ 196,800

b. Balance Sheet -

Piko Sdn Bhd Balance Sheet December 31, 2019 ASSETS Current Assets: Bank Trade Receivable Allowances for doubtful debt Inventory Prepaid Administrative Expense Total Current Assets $ 58,000 $ 200,000 $ (10,000) $ 35,000 $ 4,000 $ 287,000 Property Plant and Equipment Plant and Machinery Acccumulated Depreciation Total Property Plant and Equipment $ 920,000 $ (307,000) $ 613,000 TOTAL ASSETS $ 900,000 LIABILITIES Current Liabilities: Trade Payables Accrued Distribution Expense Income Tax Payable Total Current Liabilities $ 73,500 $ 7,500 $ 49,200 $ 130,200 Long Term Liabilities: 6% Bonds $ 400,000 Total Liabilities $ 530,200 STOCKHOLDER'S EQUITY Share Capital Retained Earnings 31 December 2018 Add: Net Income Less: Dividend Paid Total Equity $ 120,000 $ 158,000 $ 196,800 $ (105,000) $ 369,800 TOTAL LIABILITIES AND STOCKHOLDER'S EQUITY $ 900,000