ABC, Jamuna River, Sunflower and Nile

Question 1 ABC Ltd was registered on 30 June 2019. The next day, the directors issued a prospectus inviting applicants for 400000 ordinary shares with an issue price of $2. The shares were payable in full on application. By 31 July, the company had received 500000 applications, together with the  application monies. The directors allotted 400000 shares on 1 August and returned the money for additional applications. Required:  Prepare general journal entries to record the above data. Enter the above data into ledgers. Question 2 Jamuna River Ltd purchased a parcel of assets and liabilities comprising a business directly from Lyneham Pty Ltd. The parcel, measured at net fair values, consisted of:  Balance of Accounts:       Plant                               …

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Sandox, Beacon, Kakadu, Diana Wonder, Greyhound and Safeway Inc.

Question 1 Sandox Retail has the following unadjusted trial balance as at 30 June 2020 in the table: Accounts Debit ($) Credit ($) Cash 8,524 Accounts Receivable 7,000 Supplies 15,000 Prepaid Insurance 300 Insurance Expense 600 Equipment 27,000 Accumulated Depreciation 12,000 Other Assets 5,100 Wages Payable 1,500 Accounts Payable 7,500 Income Tax Payable 3,150 Share Capital (3000 shares outstanding all year) 16,000 Retained Profit 10,300 Sales Revenue 95,000 COGS 32,900 Wages Expense 18,000 Supplies Expense 25,680 Income Tax Expense 5,346 Total 145,450 145,450   Required: Prepare an Income Statement for Sandox Retail for the financial year 2019-2020. Prepare a Balance Sheet as of 30 June 2020. Prepare the closing journals for Sandox Retail.   Question 2 Beacon Limited had the following…

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Taylor Ltd, a supplier of music records and equipment, agreed to acquire

Taylor Ltd, a supplier of music records and equipment, agreed to acquire the business of a rival company, Speedy Ltd, taking over all assets and liabilities as at 1 June 2020.   The price agreed on was $175,000, payable $150,000 in cash and the balance by the issue to the selling company of 25,000 fully paid shares in Taylor Ltd, these shares having a fair value of $1.00 per share.   The trial balances of the two companies as at 1 June 2020 were as follows.     Taylor Speedy   Dr Cr Dr Cr Share capital       1,200,000         300,000 Retained earnings          420,000       184,000   Accounts payable            97,000         325,000 Cash         …

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Jake took a 5-year $200,000 loan from MQ bank

Today is 1 January 2020. Jake just used $400,000 ($200,000 is from Jake’s own investment and $200,000 is raised by taking a 5-year loan) to purchase a cafe franchise. To operate this business, Jake needs to pay rent, maintenance costs, labour costs and loan repayments. Jake took a 5-year $200,000 loan from MQ bank. Jake needs to make 60 monthly repayment with an amount of $3,800. The loan repayment will be paid by the end of each month. This package has an annual fee of $200. The package fee is paid on 30 June of each year during the following five-year period. The first one will be paid on 30 June 2020. This loan will be fully repaid by the end…

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Seasonal Delights Catering offer personalised catering

Scenario Seasonal Delights Catering offer personalised catering to corporate clients. To help cost their jobs they have recently implemented a Job Costing System. The head chef has allocated a costing for ingredients to each menu item to help quickly calculate how much they will spend on materials based on the menu selected by the client. For each job casual staff are employed by the hour as required. You need to help finish off the spreadsheet template that they will use to cost Job 4155 and all future jobs. Start by downloading the assessment workbook from iLearn and copying/moving it to an appropriate folder. When you open the Excel file it is very important that you Enable Macros and Content. You will…

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Principles of Financial Management

Question 1 Assume that you have $10,000 to invest in a term deposit. In this situation, explain which of the three (3) deposits listed below (a. – c.) you would select if the selection strategy is totally depend on the higher percentage per annum (per year). a 90-day deposit that has a maturity value of $10,250. a 130-day deposit that has a maturity value of $10,390. a 145-day deposit that has a maturity value of $10,420. Question 2  Calculate the opportunity cost of an invoice that specifies the following conditions, as shown below (a. – c.): conditions: 1.25/10, n/30. conditions: 1.25/10, n/60. conditions: 1.5/10, n/60. Question 3 As a small software developer firm, you have approached the AXZ Bank to obtain…

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TAKULAH, Fitbit, Dainty and Compaq

Question 1 TAKULAH Traders Ltd purchased a machine for $650 000 and there was an accumulated depreciation balance of $110 000 at 30 June 2022. Its fair value is assessed at this time, with its first revaluation as $450 000. The machine’s useful life is expected to be 5 more years and the residual value to be $50 000. On 1 July 2023 the asset’s fair value is $460 000 and the residual value and useful life are expected to be unchanged (that is, there is 4 years of remaining life). Required: Provide the journal entries necessary to account for all the above transactions and events up to 1 July 2023, in accordance with AASB 116 if the revaluation is undertaken.…

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Tik Tok, Trackit and Perfumes Ltd

Question 1 Tik Tok Company manufactures customized coffee tables. The following relates to Job No. X10, an order for 150 coffee tables:   Direct materials used $22 800 Direct labour hours worked 600 Direct labour rate per hour $16.00 Machine hours used 400 Applied factory overhead rate per machine hour $30.00   Required: What is the total manufacturing cost for Job No. X10? Calculate the cost per coffee table for Job No. X10? List two uses of this unit cost information to the managers at Tik Tok Company.   Question 2 TikTok Electronics manufactures an aluminium fibre tripod model “TRI-X”  which sells for $1,600. The production cost computed per unit under traditional costing for each model in 2019 was as follows:…

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Master Ltd acquired its shares in Chef Ltd at 1 January 2022

The financial information for Master Ltd and its 100% owned subsidiary, Chef Ltd, for the period ended 31 December 2022 is as follows:   Master Ltd Chef Ltd Sales revenue $ 70 000 $ 67 000 Dividend revenue 13 000 0 Gain on sale of property, plant and equipment 13 000 15 000 Other income 14 000 16 000 Total income 110 000 98 000 Cost of sales 30 000 26 000 Other expenses 11 000 7 000 Total expenses 41 000 33 000 Profit before income tax 69 000 65 000 Income tax expense 10 200 7 200 Profit for the period 58 800   57 800 Retained earnings (1/1/22) 22 000 15 000 80 800 72 800 Interim dividend…

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Helena, Adam Ltd, Mason Ltd and Megamart Ltd

Question 1 The unadjusted trial balance of Helena’s Hire Cars is shown below (ignore GST). Helena’s Hire Cars Trial Balance As at 30 June 2019 Account Debit Credit Cash at bank 18,140 Accounts receivable 21,340 Office supplies 640 Prepaid advertising 3,880 Hire cars 93,600 Accumulated Depreciation – hire cars 39,400 Accounts payable 10,800 Unearned hire fees 2,260 Helena, Capital 68,340 Helena, Drawings 20,600 Hire fees revenue 98,700 Wages expense 50,620 Fuel and oil expense 10,680 219,500 219,500   Additional information Petrol purchased on credit for $680 and used during the last week in June has not been paid for or recorded. A physical count showed office supplies totalling $340 were still on hand at 30 June. Depreciation for 1 year on…

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An investor age 35 deposits $10000

An investor age 35 deposits $10000 in a fund earning 7% compound interest until retirement at age 65. Find the amount of interest earned (calculations by hand) : Between ages 35 and 45 Between ages 45 and 55 Between ages 55 and 65 Jim loans 10000$ to Amenda immediately, 5000$ in 3 years and 1000$ in 4 years. Amenda repays Jim with two equal payments of Y $; one payment of Y at the end of the fifth year and one payment of Y at the end of the sixth year, assuming a nominal interest rate of 6%, compounded monthly. (a) Draw a time diagram of the cash flows. 0                     1                     2                     3                     4                     5                     6 (b) Evaluate Y . Billy…

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Accounting for Corporate Entities – Morning Star & Aileen Ltd

  A different version of this question is available here.   Question 1 Morning Star Ltd was registered on 1 July 2020, as a company with a constitution limiting the shares that could be offered to 5 000 000 Ordinary shares (including all classes) and 2 000 000 preference shares. The company issued a prospectus dated 1 July 2020 inviting the public to apply for 3 000 000 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 2020. If the issue is oversubscribed the directors will make a pro-rata issue of shares and the excess…

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