FM-BINUS-AA-FPU-78/V2R0

BINUS University

Academic Career: Class Program:

Undergraduate / Master / Doctoral *) International/Regular/Smart Program/Global Class*)

√ Mid Exam  Final Exam Term : Odd/Even/Short *)

 Short Term Exam  Others Exam : _____________

√ Kemanggisan √ Alam Sutera  Bekasi Academic Year :

 Senayan  Bandung  Malang 2019 / 2020

Faculty / Dept. : Faculty of Economics and Deadline Day / Date : Kamis, 16 April 2020
Communication & School of Information Time : 17:00:00 WIB
Systems / Accounting / Accounting
Technology / Finance / Accounting &
Information Systems
Code - Course : ACCT6034 / F0054 – Financial Class : LA16, LB16, LA53,
Accounting II LB53, LC53, LD53,
LE53, LF53, LG53,
LA55, LB55, LA90
Lecturer : External Examiner - Dr. Zaidi Mat Daud Exam Type : Online

) Strikethrough the unnecessary items
The penalty for CHEATING is DROP OUT!!!

Case 1a (10 marks)

On 1 January 2017, Alor Bhd had 1,000,000 outstanding ordinary shares which had been
originally issued at a price of RM3.50 per share. During the year, the company engaged in the
following treasury share transactions:

Date Transaction
Repurchased 10,000 units of its ordinary shares for RM3.30 per
1 February 2017
share.
3 March 2017 Reissued 6,000 units of the treasury share for RM3.50 per share.
5 May 2017 Reissued 3,000 shares of the treasury share for RM3.20 per share.
31 August 2017 Retired the remaining 1,000 units of treasury share.

Required:
Prepare journal entries to record the above transactions.

Case 1b (10 marks)

During the financial year ended 31 December 2018, the following events occurred in Cempaka
Berhad:

2018
28 Mar Annual general meeting approves the final dividend for 2018 of RM70,000.
Verified by,

Sasya Sabrina (D5406) and sent to Department on Nov 26, 2019

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 FM-BINUS-AA-FPU-78/V2R0
1 Apr Cempaka Berhad pays the final dividend to shareholders.
30 Jul Cempaka Berhad pays an interim dividend of RM80,000.
31 Dec Cempaka Berhad declares a final dividend of RM75,000. The dividend requires
shareholders’ approval at the next AGM.

Required:
Prepare the journal entries to record the dividend transactions of Cempaka Berhad.

Case 2 (30 marks)

On 30 September 2014, Pelangi Berhad, a listed company had 8 million ordinary shares
amounted to RM4 million. Two months later, on 1 December 2014, Pelangi Berhad
consolidated two existing shares into one share.

On 31 March 2015, the company issued 2 million ordinary shares at a price of RM2 per share.

On 30 September 2015, the company make a right issue of 1 share for every 5 outstanding
shares. The last exercise date for right issue was on 1 May 2016 and the exercise price would
be RM3.50 per share.

After that, on 1 January 2016, Pelangi Berhad issued fully paid up 500,000 convertible
preference shares at RM4 per share. On 30 September 2016, 100,000 preference shares were
converted into ordinary shares at a rate of 1 preference share for 3 ordinary shares.

On 1 August 2017, the company purchased back 300,000 of its issued ordinary shares at a price
of RM4.50 each.

The profit after tax attributable to shareholders of Pelangi Berhad was RM4.1 million, RM4.3
million, RM4.7 million and RM5.2 million for financial year ended 30 September 2014, 2015,
2016 and 2017 respectively.

The corporate tax rate is 24%.

Required:
Calculate the basic earnings per share for Pelangi Berhad as at 30 September 2014, 2015, 2016
and 2017. Show all your workings.

Case 3 (25 marks)

1. Revenue is recognised based on a five step process that is applied to a company’s revenue
arrangement.
(a) Describe the five-step process in revenue recognition. Give example. (10 marks)
(b) Revenue may also be recognised over time. Give one example of business activities in
which revenue is recognised over time. Explain the rationale in recognising revenue
over time instead of the point of sale basis. (5 marks)
Verified by,

Sasya Sabrina (D5406) and sent to Department on Nov 26, 2019

Page 2 of 4
 FM-BINUS-AA-FPU-78/V2R0

2. Su Oven Ent is an oven dealer. Other than selling ovens, the company also offers
additional services such as installation services and maintenance services together with the
ovens that it sells. Following are two major events that occurred during the year 2016.
(i) On 10 April, Su Oven signed a contract which is comprised of a free standing oven
plus installation to a customer for a total price of RM8,000. On a standalone basis, the
oven sells for RM7,000 while the installation would cost RM1,500. The customer paid
the contract in cash and the oven were delivered and installed on 15 May.
(ii) On 11 April, Su oven enters into a contract with a well-known national chain hotel to
deliver 400 ovens during 2016. The ovens are priced at RM200 each and Su Oven
provides a 6% volume discount if the hotel purchases at least 300 ovens during 2016.
On 24 April, the company delivered and received payment for 280 ovens. Based on
prior experience with this hotel, the delivery of this many ovens makes it certain that
the hotel will meet the discount threshold.
Required:
Prepare the journal entries to record all transactions occurred in year 2016. Show all
your workings. (10 marks)

Case 4 (25 marks)

The following information relate to the accounting records of Triple Berhad for the financial
year ended 31 December 2017:

Accounts Carrying Amount (RM,000)

Property, plant and equipment 8,600
Leasehold land 3,400
Product development expenditure 2,000
Financial assets 4,000
Warranty payable 240
Rental payable 110

Additional information:
(i) The amount deductible for tax purposes in the future periods relating to the property,
plant and equipment is RM2.4 million.
(ii) Leasehold land is a non-qualifying asset.
(iii) During the year, the company does not charge any amortisation for the product
development expenditure. Deduction for tax purposes is allowed upon amortisation.
(iv) No claims are yet to be received relating to the warranty payable during 2017.
(v) Rental is deductible for tax purposes only upon the payment of rental. No payment has
been made during the year.
(vi) There is no deferred tax brought forward from the previous year and taxable income for
the year is RM4.775 million.
(vii) The current year tax rate is 24%.

Verified by,

Sasya Sabrina (D5406) and sent to Department on Nov 26, 2019

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 FM-BINUS-AA-FPU-78/V2R0
Required:
(a) Prepare a table showing the tax base and temporary differences for the items above as
at 31 December 2017. (5 Marks)
(b) Determine the amount of tax expense as charged in the statement of profit or loss and
other comprehensive income and the deferred tax liability in the statement of financial
position as at 31 December 2017. (7 Marks)
(c) Prepare the journal entry record income tax expense, deferred income tax and income
tax payable for 2017. (5 Marks)
(d) Explain how users are benefited from accounting for deferred tax in company’s
financial statements. (8 Marks)

☺DO YOUR BEST AND GOOD LUCK ☺

Verified by,

Sasya Sabrina (D5406) and sent to Department on Nov 26, 2019

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 KETENTUAN PENGUMPULAN BERKAS JAWABAN UTS

Mahasiswa wajib mematuhi ketentuan pengumpulan berkas jawaban UTS berikut ini.

1. Pengumpulan (submit) jawaban ujian tidak melalui BINUSMAYA, melainkan melalui

http://exam.apps.binus.ac.id. Akses menggunakan username dan password login BINUSMAYA.

2. Pastikan file extension dan size file sesuai ketentuan. File extension yang diperbolehkan adalah
'txt', 'pdf', 'ppt', 'xls', 'doc', 'pptx', 'xlsx', 'docx', 'rar', 'zip', 'jpg', 'jpeg', 'png', 'wav', 'mp3', 'mp4',
'avi', '3gp', 'mkv', 'mov', dan 'flv'. Maksimum size file yang diperbolehkan adalah 20 MB.

3. Jika file jawaban ujian akan dikumpulkan (submit) Mahasiswa berukuran lebih besar dari 20 MB
(>20 MB), maka Mahasiswa harus melakukan:
a. Menyimpan file jawaban ujian pada Cloud Storage, seperti Google Drive, Dropbox, OneDrive,
dan yang lainnya.
b. Membagikan tautan (share link) file jawaban ujian dan menyalin tautan (link) ke dalam
Microsoft Word.
c. Mengunggah (upload) file Micrososft Word yang telah berisi tautan file jawaban ujian pada
http://exam.apps.binus.ac.id.

STUDENT’S GUIDELINES FOR SUBMITTING MID EXAM ANSWER FILE

Students are obliged to follow the following guidelines for submitting mid exam answer file:

1. The answer file is not to be submitted in BINUSMAYA, but through the following link:
http://exam.apps.binus.ac.id. Students can log in by using the username and password as in
BINUSMAYA.

2. Please make sure to submit the answer file in one of the following accepted extensions: 'txt', 'pdf',
'ppt', 'xls', 'doc', 'pptx', 'xlsx', 'docx', 'rar', 'zip', 'jpg', 'jpeg', 'png', 'wav', 'mp3', 'mp4', 'avi', '3gp',
'mkv', 'mov', or 'flv'. The file size should not exceed 20 MB.

3. If the answer file size exceeds 20 MB, the student should perform the following procedures:
a. Save the answer file in Cloud Storage such as Google Drive, Dropbox, OneDrive, etc.
b. Copy the file link and paste it on a blank Microsoft Word document.
c. Upload the Microsoft Word document containing the file link through
http://exam.apps.binus.ac.id.