Jenny Ltd, Hawaii Limited and Ethan Ltd

Question 1 Jenny Ltd’s equity at 30 June 2019 was as follows: 200 000 ordinary shares, issued at $3.20, fully paid 250 000 ordinary shares, issued at $4, called to $2.40 180 000 redeemable preference shares, issued at $1, fully paid Calls in advance (5 000 ordinary shares) Share issue costs General reserve Retained earnings $640 000 600 000 180 000 8 000 (7 000) 60 000 310 000         The following events occurred during the year ended 30 June 2019: 2018 July 15 The final call, due 31 August, was made on the partly paid shares. Aug. 31 All call money was received, except for that due on 12 000 shares. Sept. 10 In accordance with the constitution, the shares on which the call was unpaid were forfeited. The…

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Jacque Mercedes owns and operates a successful tour business – Balance Day Adjustments

QUESTION 1: Balance Day Adjustments Jacque Mercedes owns and operates a successful tour business specialising in mountain e-bike adventure holidays. The business also sells a range of cycling products but its main item is a custom made mountain e-bike, “Vampex”. The “Vampex” is made only for The E-Bike Tour Company and has recently featured in a number of bike touring / holiday magazines. As a result of this recent positive media coverage, Jacque has been too busy to undertake any record keeping for the company and has handed the record keeping over to the accounting practice where you work as a graduate accountant.   The E-Bike Tour Company Trial Balance 30 June 2019 $ $ Cash 3,060 Accounts Receivable 3,500 Inventory…

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Morning Star Ltd was registered on 1 July 2018, as a company

Question 1 Morning Star Ltd was registered on 1 July 2018, as a company with a constitution limiting the shares that could be offered to 7 000 000 Ordinary shares (including all classes) and 2 000 000 preference shares. The company issued a prospectus dated 1 July 2018 inviting the public to apply for 4 000 000 Ordinary A class shares at $3.00 per share. The terms of the shares on issue are $1.50 on application, $1.00 on allotment and $0.50 to be called within six months of allotment before 31 December 2018. If the issue is oversubscribed the directors will make a pro-rata issue of shares and the excess application money will be applied to allotment and calls before any…

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Futura robotics manufacture custom made robotic components

Scenario Futura robotics manufacture custom made robotic components.  Each job is unique and costed individually. You are required to create a spreadsheet that records a list of completed jobs and allows the company to cost up new jobs.   Start by downloading the assessment workbook from iLearn and copying/moving it to an appropriate folder. When you open the workbook it is very important that you Enable Macros/Content. You will then be asked to enter your Student Number (you will not be able to edit it afterwards, so type it in carefully) and then enter your Student Name.   General Guidelines With the exception of the Journal Accounts, which are to be selected from the drop-down list, all the light blue cells…

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Bolan Ltd – Accounting for associates, liquidation

Question 1 On 1 July 2017, Bolan Ltd purchased 40% of the shares of Rex Ltd for $151 680 and signed a joint venture agreement with the two other shareholders in Rex Ltd. At that date, equity of Rex Ltd consisted of: Share capital                                   $300 000 Retained earnings                               26 400   At 1 July 2017, the identifiable assets and liabilities of Rex Ltd were recorded at amounts equal to their fair values.   Information about income and changes in equity for both companies for the year ended 30 June 2020 was as shown. Bolan Ltd Rex Ltd Profit before tax Income tax expense Profit Retained earnings (1/7/19)   Dividend paid Dividend declared   Retained earnings (30/6/20) $ 62…

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Newsurf Ltd – Preparation of Financial Statements

Newsurf Ltd, has been manufacturing and selling surfboards for the last two years. Newsurf Ltd commenced operations on 1 July, 2017 by issuing 500 000 $3.50 shares, payable in full on application. There were no share issue costs.   For the year ending 30 June 2019, the company recorded the following aggregate transactions:   Accounts $ Sales 5 385 000 Interest income 11 000 Cost of Sales 3 409 000 Gain on sale of plant 25 000 Employee benefit expenses – Admin 136 000 Depreciation expense- Admin 54 000 Selling & Distribution Expenses 932 000 Insurance expense – Admin 60 000 Doubtful debts expense 5 000 Interest expense 38 000 Other borrowing expenses 4 000 Income tax expense 268 000  …

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Today is 1 January 2019. Lucy is planning to purchase

*It has been assumed that interest is payable Annually and given interest rates are p.a. compounded annually. Today is 1 January 2019. Lucy is planning to purchase a 10-year 4.15% p.a. Treasury bond with a face value of $100. The maturity date of the treasury bond is 1 January 2029 The bond is redeemable at par. Use Goal Seek to find Lucy’s yield to maturity (express your answer as a j2), if the purchase price is $96.5. Use Goal Seek to find Lucy’s net yield to maturity, that is after tax rate, (express your answer as a j2), if the purchase price is $95.5. Given that Lucy needs to pay 30% tax on coupon payment (interest payment) only. Use Goal Seek…

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Sunnybank Ltd acquired all issued share capital of Sunnybank Hills Ltd

Sunnybank Ltd acquired all issued share capital of Sunnybank Hills Ltd on 1 July 2019 for a cash payment of $700,000. The share capital and reserves of Sunnybank Hills Ltd at the date of acquisition were:   Share capital               $300,000 Retained earnings       $200,000 Revaluation surplus   $36,000   All assets of Sunnybank Hills Ltd were fairly valued at the date of acquisition, except for an equipment that had a fair value $20,000 greater than its carrying amount. The cost of the equipment was $75,000 and it had accumulated depreciation of $25,000. At the date of acquisition, it was expected that the equipment had a remaining useful life of eight years. There were no transactions between Sunnybank Ltd and Sunnybank Hills…

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FlixCity & Gaming – Below is the post-closing trial balance which summarised the account numbers

FlixCity & Gaming Post-closing Trial Balance for the month ended 30 June 2016 Account No’s Account Names Opening Balances Dr Cr ASSETS 100 Cash at Bank             10,763.20 110 Accounts Receivable               4,385.27 130 Prepaid Advertising               1,000.00 140 Prepaid Insurance                  798.59 150 Land           717,580.00 160 Buidling           125,000.00 165 Accumulated Depreciation – Building             15,625.00 170 Equipment – Computer/console/candy bar/projector           250,000.00 175 Accumulated Depreciation – Equipment           125,000.00 LIABILITIES 200 Accounts Payable               9,586.38 210 Unearned revenue               3,700.00 220 Interest Payable               3,200.00 230 Loan Payable – Principal due May 2030           906,800.00 240 Wages Payable               2,550.00 250 Utilities Payable               1,650.00 EQUITY 300 Nicholas Robbins, Capital             41,415.68 301 Nicholas Robbins, Drawings 0.00 REVENUE…

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Sunshine Ltd acquired all the issued shares of Rainbow Ltd

Assignement Question Sunshine Ltd acquired all the issued shares of Rainbow Ltd on 1 July 2018 for $350 000. At this date Rainbow Ltd recorded a dividend payable of $12 000 and equity of:   Share capital                                            $ 35 000 Retained earnings                                       52 000 Asset revaluation surplus                            10 000   All the identifiable assets and liabilities of Rainbow Ltd were recorded at amounts equal to their fair values at acquisition date except for:   Carrying amount                       Fair value Inventory                                        $ 15 000                            …

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Sheep Drench department and Cattle drench

Question 1: Budget You are now preparing the budget for the Sheep Drench department for the months of April and May. Sheep Drench manufacturing costs have been budgeted as follows:     Direct materials  $          3.0 per unit Direct labour  $          1.5 per unit Factory overhead Variable  $        0.25 per unit Fixed  $      5,000 per month (Includes $1000 depreciation)   Selling and administrative expenses, including depreciation of $400 per month, are all fixed and total $2500 per month. Other information is as follows: There is an opening inventory of direct materials of $22,500 purchased in February. The selling price of the product has been set at $26 per…

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‘Little Red Riding’ began business on 1 June 2019

Question 1 Retail operations and retail inventory ‘Little Red Riding’ began business on 1 June 2019.  The business is a partnership, between Mr Wheeler and Mrs Wheeler.  The business will sell children’s bicycles at the local markets.  The business is not registered for GST.  The following transactions occurred during June 2019: Date: Details: 1-Jun Mr and Mrs Wheeler deposited $30,000 into the business bank account. 2-Jun Purchase of bicycles (100 small bicycles, and 100 large bicycles) from Red Bikes Rock Ltd on account for $10,000 ($50 per bicycle) on terms of 2/10, n/30. 4-Jun Little Red Riding received an invoice from Fast Freight Ltd relating to delivery costs for the bicycles purchased on 2 June.  The amount due is $300, and…

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