USA: +1 (725) 712-1730
USA: +1 (725) 712-1730

Question & Answer: Habib Sdn. Bhd. is a merchandising company which has business operations in Cyberjaya. The following balances have been extracted…..

Prepare the retained earnings statement for the year ended 31 December 2016

QUESTION 6 Habib Sdn. Bhd. is a merchandising company which has business operations in Cyberjaya. The following balances have been extracted from the books as at 31 December 2016 Land and building Motor vehicles Furniture Accumulated Depreciation (RM) 900,000 240,000 60,000 Motor vehicles Furniture 8% Loan from CIMB, 10 Years Bank overdraft Cash Account receivable Inventories, 1 Jan Account payable Dividend Common stock Investments (Long term) Carriage outwards Carriage inwards Return inwards Purchases Discount allowed Salaries expenses Rental expense Insurance Interest expenses Commission received Sales General expense Retained earnings, 1 Jan 72,000 11,400 350,000 45,000 36,000 122,800 117,200 65,000 60,000 800,000 110,000 40,000 9,600 2,000 440,000 45,000 150,000 10,000 36,000 14,000 5,000 980,000 91,800 156,000 Additional information: 1. Closing inventories as at 31 December 2016 was valued at RM50,000 2. Half of the interest on loan has not been paid for the year 3. Depreciation was to be provided: Motor vehicles Furniture 10% on straight line method. 10% on reducing balance method. 4. Rental includes RM2,000 paid in advance

Habib Sdn. Bhd. is a merchandising company which has business operations in Cyberjaya. The following balances have been extracted from the books as at 31 December 2016. 1. Closing inventories as at 31 December 2016 was valued at RM50,000. 2. Half of the interest on loan has not been paid for the year. 3. Depreciation was to be provided: Motor vehicles 10% on straight line method. Furniture 10% on reducing balance method. 4. Rental includes RM2,000 paid in advance.

Expert Answer

 

Still stressed from student homework?
Get quality assistance from academic writers!
Order now