Homework Answers
As per MFRS 110 (Events after the reporting period), any adjusting events occurred after the reporting date but before the financial statements are authorized, the financial statements are to be adjusted with those events.
An adjusting event is an event after the reporting period that provides further evidence of conditions that existed at the end of the reporting period, including an event that indicates that the going concern assumption in relation to the whole or part of the enterprise is not appropriate.
As per IAS 2 (Inventories), inventories are to be measured at the lower of cost and net realisable value (NRV).
NRV is the estimated selling price less the estimated costs of completion and the estimated costs necessary to make the sale.
In the given case the NRV after the reporting period is computed as
Estimated selling price = 550
Less: Estimated costs of sale = (100)
Net Realizable Value (NRV) = 450
Cost of the Inventory = 500
Since the NRV is lower, the inventory is to be valued at RM 450 per unit. Since the fall in NRV gives a shred of additional evidence related to the conditions that exist on the reporting date, it is an adjusting event and the same has to be adjusted for the period ended 31 December 2016.
The value of inventory as at 31 December 2016 = 4000 units * RM 450 = RM 1800,000
Value to be written down = 4000 units * RM 50 = RM 200,000
Journal entry to adjust the event
Particulars Debit Credit
Inventory write-downs 200,000
Inventory 200,000
Add Answer to:
31 December 2016 - Reporting Date 5 March 2017 - Authorization Date At its year end...
please read english version and provide answer based on question.Provide detailed answer regarding disclosure an adjusting...
please read english version and provide answer based on
question.Provide detailed answer regarding disclosure an adjusting
journal.
b) Finch Berhad adalah sebuah syarikat pengeluar dan penjual barang-barang plastik. Tarikh akhir tahun kewangan Finch Berhad adalah pada 31 Disember 2016. Ahli lembaga pengarah meluluskan dan memberi kuasa untuk menerbitkan penyata kewangan pada 28 Mac 2017. Penyata Kewangan Finch Berhad diterbitkan kepada awam pada 15 April 2017. Finch Berhad is a company producing and selling plastic goods. The financial year-end of Finch...
Pada 31 Disember 2017, Mahligai Berhad mempunyai baki aset loji dan susut nilai terkumpul adalah seperti...
Pada 31 Disember 2017, Mahligai Berhad mempunyai baki aset loji dan susut nilai terkumpul adalah seperti berikut: At 31 December 2017, Mahligai Berhad's plant asset and accumulated depreciation accounts had the following balances: Aset bukan semasal Non- current Assets Nilai/Value Susut nilai terkumpull Accumulated depreciation RM RM Kaedah susut Hayat nilail bergunal Depreciation Useful life method Tahun/Years Tanah/Land 175,000 Bangunan/Buildings 1,500,000 240,000 Jentera/Machinery 1,125,000 225,000 Garis Lurus Straight line Garis Lurus Straight line Garis Lurus Straight line 10 Paten/Patent 500,000...
The following calendar year-end information istaken from the December 31, 2017, adjusted trial ba...
The following calendar year-end information istaken from the December 31, 2017, adjusted trial balance and other records of Leone Company Advertising expense Depreciation expense-Office equipment Depreciation expense-Selling equipment Depreciation expense-Factory equipment Factory supervision Factory supplies used Factory utilities Direct labor Indirect labor Miscellaneous production costs Office salaries expense Raw materials purchases* Rent exp Rent expense-Selling space Rent expense-Factory building Maintenance expense-Factory equipment Sales Sales salaries expense $30,250 9,500 9,900 37,550 108,360 8,850 37,500 693,000 74,200 8,875 65,200 935,000 29,800 30,900...
The following calendar year-end information is taken from the December 31, 2017, adjusted trial balance and...
The following calendar year-end information is taken from the December 31, 2017, adjusted trial balance and other records of Leone Company Advertising expense Depreciation expense-Office equipment Depreciation expense-Selling equipment Depreciation expense-Factory equipment Factory supervision Factory supplies used Factory utilities Direct labor Indirect labor Miscellaneous production costs Office salaries expense Raw materials purchases* Rent expense-Office space Rent expense-Selling space Rent expense-Factory building Maintenance expense-Factory equipment Sales Sales salaries expense $ 31,750 9,750 9,900 38,150 105,960 8,350 39,000 711,000 59,800 11,125 72,350...
The following calendar year-end information is taken from the December 31, 2017, adjusted trial balance and...
The following calendar year-end information is taken from the December 31, 2017, adjusted trial balance and other records of Leone Company. Advertising expense Depreciation expense-office equipment Depreciation expense-Selling equipment Depreciation expense-Factory equipment Factory supervision Factory supplies used Factory utilities Direct labor Indirect labor Miscellaneous production costs office salaries expense Rav materials purchases Rent expense-office space Rent expense-Selling space Rent expense-Factory building Maintenance expense-Factory equipment Sales Sales salaries expense 31,750 8,500 10,300 33,950 108,660 10,350 34,200 729,000 62,800 10,225 72,350 957,500...
The following calendar year-end information is taken from the December 31, 2017, adjusted trial balance and...
The following calendar year-end information is taken from the December 31, 2017, adjusted trial balance and other records of Leone Company. Advertising expense Depreciation expense-Office equipment Depreciation expense-Selling equipment Depreciation expense-Factory equipment Factory supervision Factory supplies used Factory utilities Direct labor Indirect labor Miscellaneous production costs Office salaries expense Raw materials purchases* Rent expense-Office space Rent expense-Selling space Rent expense-Factory building Maintenance expense-Factory equipment Sales Sales salaries expense $ 28,750 7,250 8,600 33,550 102,600 7,350 33,000 675,480 56,875 8,425 63,000...
The following calendar year-end information is taken from the December 31, 2017, adjusted trial balance and...
The following calendar year-end information is taken from the December 31, 2017, adjusted trial balance and other records of Leone Company. Advertising expense Depreciation expense-Office equipment Depreciation expense-Selling equipment Depreciation expense-Factory equipment Factory supervision Factory supplies used Factory utilities Direct labor Indirect labor Miscellaneous production costs Office salaries expense Raw materials purchases* Rent expense-Office space Rent expense-Selling space Rent expense-Factory building Maintenance expense-Factory equipment Sales Sales salaries expense $ 31,000 9,500 10, 200 38,150 102,960 8,600 33,300 720,000 72,800 8,650...
Caterpillar Inc. 2017 2016 5 S 51,822 2,900 54,722 42,676 2,786 45,462 35,773 2,764 38,537 STATEMENT...
Caterpillar Inc. 2017 2016 5 S 51,822 2,900 54,722 42,676 2,786 45,462 35,773 2,764 38,537 STATEMENT 1 Consolidated Results of Operations for the Years Ended December 31 Dollar is willions cat pershare dal Sales and revenues Sales of Machinery, Energy & Transportation Revenues of Financial Products Total sales and revenues Operating costs Cost of goods sold Selling, general and administrative expenses Research and development expenses Interest expense of Financial Products Goodwill impairment charge Other operating incomel expenses Total operating costs...
please read english version and provide answer based on
question.Provide detailed answer regarding disclosure an adjusting
journal.
b) Finch Berhad adalah sebuah syarikat pengeluar dan penjual barang-barang plastik. Tarikh akhir tahun kewangan Finch Berhad adalah pada 31 Disember 2016. Ahli lembaga pengarah meluluskan dan memberi kuasa untuk menerbitkan penyata kewangan pada 28 Mac 2017. Penyata Kewangan Finch Berhad diterbitkan kepada awam pada 15 April 2017. Finch Berhad is a company producing and selling plastic goods. The financial year-end of Finch...
Pada 31 Disember 2017, Mahligai Berhad mempunyai baki aset loji dan susut nilai terkumpul adalah seperti berikut: At 31 December 2017, Mahligai Berhad's plant asset and accumulated depreciation accounts had the following balances: Aset bukan semasal Non- current Assets Nilai/Value Susut nilai terkumpull Accumulated depreciation RM RM Kaedah susut Hayat nilail bergunal Depreciation Useful life method Tahun/Years Tanah/Land 175,000 Bangunan/Buildings 1,500,000 240,000 Jentera/Machinery 1,125,000 225,000 Garis Lurus Straight line Garis Lurus Straight line Garis Lurus Straight line 10 Paten/Patent 500,000...
The following calendar year-end information istaken from the December 31, 2017, adjusted trial balance and other records of Leone Company Advertising expense Depreciation expense-Office equipment Depreciation expense-Selling equipment Depreciation expense-Factory equipment Factory supervision Factory supplies used Factory utilities Direct labor Indirect labor Miscellaneous production costs Office salaries expense Raw materials purchases* Rent exp Rent expense-Selling space Rent expense-Factory building Maintenance expense-Factory equipment Sales Sales salaries expense $30,250 9,500 9,900 37,550 108,360 8,850 37,500 693,000 74,200 8,875 65,200 935,000 29,800 30,900...
The following calendar year-end information is taken from the December 31, 2017, adjusted trial balance and other records of Leone Company Advertising expense Depreciation expense-Office equipment Depreciation expense-Selling equipment Depreciation expense-Factory equipment Factory supervision Factory supplies used Factory utilities Direct labor Indirect labor Miscellaneous production costs Office salaries expense Raw materials purchases* Rent expense-Office space Rent expense-Selling space Rent expense-Factory building Maintenance expense-Factory equipment Sales Sales salaries expense $ 31,750 9,750 9,900 38,150 105,960 8,350 39,000 711,000 59,800 11,125 72,350...
The following calendar year-end information is taken from the December 31, 2017, adjusted trial balance and other records of Leone Company. Advertising expense Depreciation expense-office equipment Depreciation expense-Selling equipment Depreciation expense-Factory equipment Factory supervision Factory supplies used Factory utilities Direct labor Indirect labor Miscellaneous production costs office salaries expense Rav materials purchases Rent expense-office space Rent expense-Selling space Rent expense-Factory building Maintenance expense-Factory equipment Sales Sales salaries expense 31,750 8,500 10,300 33,950 108,660 10,350 34,200 729,000 62,800 10,225 72,350 957,500...
The following calendar year-end information is taken from the December 31, 2017, adjusted trial balance and other records of Leone Company. Advertising expense Depreciation expense-Office equipment Depreciation expense-Selling equipment Depreciation expense-Factory equipment Factory supervision Factory supplies used Factory utilities Direct labor Indirect labor Miscellaneous production costs Office salaries expense Raw materials purchases* Rent expense-Office space Rent expense-Selling space Rent expense-Factory building Maintenance expense-Factory equipment Sales Sales salaries expense $ 28,750 7,250 8,600 33,550 102,600 7,350 33,000 675,480 56,875 8,425 63,000...
The following calendar year-end information is taken from the December 31, 2017, adjusted trial balance and other records of Leone Company. Advertising expense Depreciation expense-Office equipment Depreciation expense-Selling equipment Depreciation expense-Factory equipment Factory supervision Factory supplies used Factory utilities Direct labor Indirect labor Miscellaneous production costs Office salaries expense Raw materials purchases* Rent expense-Office space Rent expense-Selling space Rent expense-Factory building Maintenance expense-Factory equipment Sales Sales salaries expense $ 31,000 9,500 10, 200 38,150 102,960 8,600 33,300 720,000 72,800 8,650...
Caterpillar Inc. 2017 2016 5 S 51,822 2,900 54,722 42,676 2,786 45,462 35,773 2,764 38,537 STATEMENT 1 Consolidated Results of Operations for the Years Ended December 31 Dollar is willions cat pershare dal Sales and revenues Sales of Machinery, Energy & Transportation Revenues of Financial Products Total sales and revenues Operating costs Cost of goods sold Selling, general and administrative expenses Research and development expenses Interest expense of Financial Products Goodwill impairment charge Other operating incomel expenses Total operating costs...
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